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Real Estate Terms

Posted by  on Apr 16, 2009
 
Real Estate is a complicated matter that involves different terminology. This terminology is often times extremely confusing, however if you research a little bit about these real estate terms, you can become familiar with them. As soon as you understand real estate terms, you will be better able to understand real estate.

As soon as you understand real estate, you will be able to understand how to buy a house, obtain a mortgage, or whatever else your desire entails.

Common amenities include swimming pools, professional landscaping, gourmet kitchen and so on. A title is transferred from one party to another through a document called a deed. Title Insurance is protection for lenders and homeowners against financial loss resulting from legal defects in or other claims against the property's title. The cost of the policy is usually a function of the value of the property and is often borne by the purchaser and or seller.

Underwriting is the decision whether to make a loan to a potential home buyer based on credit, employment, assets, and other factors and the matching of this risk to an appropriate rate and term or loan amount.

Addendum is as simple as just something added. Items added to a document, letter, contract, escrow instructions, etc. Truth-In-Lending is a federal law requiring disclosure of the APR-Annual Percentage Rate to home buyers shortly after they apply for the loan.

An agent is a person who acts or has the power to act for another.

A real estate agent acts on behalf of the principal and has a fiduciary responsibility towards the principal. Buyer's Agent is an agent who represents the buyer and owes fiduciary duties to the buyer. Seller's Agent is an agent who represents the seller and owes fiduciary duties to the seller. They are usually referred to as the listing agent who is authorized by a property owner to find a buyer or a tenant for the property.

A title search is an examination of municipal records to determine the legal ownership of property. A trust is a property interest held by one person for the benefit of another, and a trustee is a party who is given legal responsibility to hold property in the best interest of or "for the benefit of" another.

Agreement of Sale is a written agreement of contract in which the seller agrees to sell and the buyer agrees to buy under specific terms and conditions. Alienation Clause is a clause within a loan instrument calling for a debt in its entirety upon the transfer of ownership of the secured property. Acceleration is the right of the mortgagee to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor, or by using the right vested in the Due-on-Sale-Clause.

Acknowledgment is a formal declaration before an authorized official by a person who has executed a document, that he did in fact execute the document.

VA or US Department of Veterans Affairs is a federal agency designed and operated to help veterans enter the housing market.

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