A written agreement between a seller and a purchaser where the purchaser commits to buying particular real estate and the seller commits to selling it under agreed-upon terms; also commonly known as a contract of sale.
The 'Asked Price' is the price a property owner sets for their property when they intend to sell it. It represents the amount they are seeking from buyers. The term 'Asked Price' is commonly used in real estate transactions and is often seen as the initial price point which may be negotiated.
The assumption fee is a charge levied by a lender to a buyer who assumes the existing loan on the subject property. It compensates the lender for administrative costs associated with transferring the loan.
Assumption of mortgage involves assuming the obligations of a mortgagor toward a mortgagee, usually as part of the purchase price of real estate. This entails the purchaser taking personal liability for the debt unless a novation releases the original borrower.
The Bundle-of-Rights Theory in real estate law postulates that ownership of realty encompasses a collection of distinct rights that include occupancy, use and enjoyment, and the ability to sell, devise, gift, or lease these rights.
A buy-back agreement is a contractual provision where the seller agrees to repurchase the property at a stated price upon the occurrence of a specified event within a certain period of time.
The closing date is the specified date on which the seller delivers the deed and the buyer completes payment for the property, finalizing the transfer of ownership.
A Contingent Agreement is a contract arrangement in which certain obligations depend on the occurrence of a particular event. These agreements often come into play during mergers and acquisitions, real estate transactions, and litigation settlements.
Conveyance refers to the act of transferring the title of real estate property from one party to another. This term can also denote the medium or method used to effect such transfer.
A disclosure statement is a legally required document in which sellers must reveal specified information to potential buyers. It ensures transparency in various transactions, particularly in real estate and investment interests.
Dual agency refers to a real estate scenario where a single agent represents both the buyer and the seller in a transaction. This practice is accepted in many states, provided there is full disclosure and consent from both parties. However, it is often met with skepticism as each party prefers individual representation to have their interests safeguarded.
An earnest money deposit is a type of advance payment made by a purchaser of real estate to show their commitment and good faith during the home-buying process.
An Environmental Site Assessment (ESA) is an evaluation of a property to determine the presence or absence of environmental contamination, ensuring compliance with environmental regulations and safeguarding public health.
An exclusive agency listing is a contract in real estate giving only one broker, for a specific time, the right to sell a property. It also allows the owner to sell the property independently without paying a commission.
An Installment Land Sales Contract, also known as a land contract, is a type of seller financing where the buyer agrees to pay the purchase price in installments over time while taking possession of the property.
A lease with an option to purchase allows the lessee (tenant) the right to buy the property at a predetermined price, under specific conditions. Its treatment may vary depending on whether it closely resembles a financing arrangement.
A like-kind exchange, also known as a tax-free exchange, is a transaction or series of transactions that allow for the deferral of capital gains tax if certain conditions are met.
Preclosing is a rehearsal of the closing process in real estate transactions where instruments are prepared and signed by some or all parties to the contract. It is especially useful when closings are expected to be complicated.
To allocate between seller and buyer their proportionate share of an obligation paid or due, such as real property taxes, insurance, or unearned rent.
A repository for official documents and records that are maintained by governmental entities.
A purchase money mortgage is a loan provided by the seller of a property to the buyer as an alternative to traditional mortgage financing. This option facilitates property sales in scenarios where obtaining a conventional loan is challenging.
In real estate, 'ready, willing, and able' refers to a person who is capable of an action and disposed to act, particularly in terms of buying property under the terms of a listing agreement. If a broker finds such a person, they have earned their commission because they have fulfilled the requirements of the listing.
A reduction certificate is a document in which the mortgagee (lender) acknowledges the sum due on the mortgage loan. It is typically used when mortgaged property is sold and the buyer assumes the debt.
A Settlement Statement is a detailed document that outlines the funds payable by each party involved in a real estate transaction, showing how these funds are distributed.
A split commission refers to the dividing of commission payments between two or more parties, typically seen in securities, real estate, and other brokerage transactions.
An individual who purchases property for the purpose of concealing the identity of the eventual purchaser, often used in real estate transactions.
A broker who represents tenants, ensuring they find the best property to lease and negotiating the most favorable transaction terms on their behalf.
A title company is a firm that examines and validates ownership titles of real estate properties, ensures they are marketable, and may also issue title insurance to protect property buyers and lenders against issues or defects in the title.
Transfer tax is a tax paid upon the passing of title to property or to a valuable interest. This tax can apply to real estate transactions and certain financial transactions.
Upfront charges are fees that are charged to homeowners at the time of closing a real estate purchase. These include various costs such as points, recording fees, mortgage title policy, appraisal, and credit report.
