Real Estate Terms From Condominiums To Deeds Of Trust

Real Estate Terms From Condominiums To Deeds Of Trust



Real Estate Terms – From Condominiums to​ Deeds of​ Trust
When buying or​ selling a​ property, it​ always helps to​ have a​ basic understanding of​ real estate terms .​
In this on going series of​ articles, we take a​ look at​ definitions starting with condominium .​
1) Condominium - a​ type of​ ownership in​ real property where all of​ the​ owners in​ a​ collection of​ properties jointly own everything except the​ interior of​ each property .​
Accordingly, the​ jointly area is​ run by a​ homeowner’s association, which can assess fees to​ the​ owners for​ improvements, etc .​

2) Contract, or​ Sales Contract, or​ Contract of​ Purchase and​ Sale – the​ agreement between buyer and​ seller .​
In most jurisdictions it​ must be in​ writing in​ order to​ be enforceable .​
It covers such things as​ the​ identity of​ the​ property, the​ purchase price, any conditions of​ the​ sale, the​ settlement date or​ escrow period, when the​ buyer will occupy the​ property, etc.
3) Contract for​ Deed – a​ written document which provides that Deed does not pass to​ the​ buyer until the​ final payment has been made .​
In the​ event of​ default by the​ buyer, the​ property reverts to​ the​ seller .​
(One sees these occasionally .​
I’ve seen them when an​ owner was financing the​ sale of​ raw land for​ a​ buyer.)
4) Deposit, or​ Good Faith Deposit – an​ amount of​ money tendered by the​ buyer at​ the​ time a​ contract offer is​ made on real property .​
the​ contract spells out who holds it, and​ circumstances under which the​ seller gets it, and​ circumstances under which it’s returned to​ the​ buyer .​
Typically, the​ seller gets it​ as​ part of​ the​ purchase price at​ settlement, or​ as​ liquidated damages if​ the​ buyer defaults .​
the​ buyer usually gets it​ back if​ a​ condition of​ settlement is​ not met.
5) Deed – the​ written document which conveys title to​ real property .​
Some states are record states and​ ownership is​ defined by the​ deed’s being recorded at​ the​ courthouse in​ which the​ property lies.
6) Deed of​ Trust – the​ document which allows a​ third party to​ act for​ the​ lender should the​ lender need to​ forclose on real property used as​ collateral for​ a​ loan.
As you can image, there are many real estate terms for​ which you have a​ general understanding .​
In our next article, we continue with the​ terms starting with Easement.




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