Real Estate Terms From Easements To Good Title

Real Estate Terms – From Easements to​ Good Title
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 easements.
1) Easement – permission given to​ (or acquired by) someone who does not own a​ parcel of​ real property enabling that person (or entity) to​ use that parcel for​ a​ specific purpose .​
It may add or​ detract value .​
It may be neutral so far as​ the​ value of​ the​ property is​ concerned .​
Examples include easements to​ utility companies for​ the​ purpose of​ running power lines, easements to​ municipalities for​ running sewer lines, and​ an​ easement to​ a​ neighbor to​ use your driveway for​ ingress and​ egress to​ his property.
2) Encroachment – a​ building, fence, wall, driveway, etc .​
which is​ intended to​ be part of​ one property and​ is​ found to​ be on, or​ partially on, another property.
3) Escrow – money and​ other items of​ value held by a​ third party for​ the​ benefit of​ the​ buyer and​ seller of​ real property .​
In California, items are accumulated in​ escrow for​ a​ stated period of​ time until all items needed to​ finalize the​ sale are in​ the​ hands of​ the​ escrow agent and​ properly processed .​
In Virginia, the​ items are accumulated but are not signed until everyone meets at​ the​ settlement table .​
Then the​ deed is​ signed, the​ lender releases funds, and​ so on .​
It is​ usually the​ next day before the​ change of​ ownership can be recorded at​ the​ courthouse, so while it​ isn’t customarily referred to​ that way, the​ settlement agent is​ usually an​ escrow agent for​ about 24 hours in​ Virginia.
4) Equity – the​ wealth value of​ a​ property for​ the​ owner .​
The equity in​ a​ property is​ equal to​ the​ fair market value minus any debts such as​ mortgages and​ taxes .​
5) Good Title – title to​ the​ real property being clear and​ clean enough that a​ title insurance company will insure it​ and​ a​ lender will make a​ loan with it​ as​ collateral.
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 Home Inspection.

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