If you are interested in purchasing property or becoming a real estate broker, it is important to have some familiarity with the terms used in this industry. There are many different terms to learn, and some can be confusing. Fortunately, this glossary will provide a good starting point to help you learn the necessary terminology.
The law that deals with real estate is a complex and varied field. It encompasses everything from the purchase and sale of property to landlord-tenant disputes. There are also laws that regulate zoning and land use, as well as the rules around property development.
A real estate agent is a licensed professional who represents either buyers or sellers in the real estate market. There are specific requirements for agents, and they must abide by a code of ethics. A realtor can help you find the perfect home or commercial space for your business. They can also negotiate with sellers and buyers to ensure that all parties are happy with the transaction.
An appraisal is a process through which a qualified professional assesses the worth of a property. This is an important step in the mortgage process because it lets the lender know that the property is being purchased for a reasonable price. If the appraisal is lower than the amount requested by the borrower, the lender will require that the buyer pay the difference in cash at closing.
A deed is a legal instrument that transfers ownership of a property from one person to another. There are various types of deeds, including quitclaim deeds and warranty deeds. Quitclaim deeds transfer ownership without any guarantees, while warranty deeds guarantee that the seller is the true owner of the property.
There are four ways that ownership of a piece of land (also known as real estate) can be transferred. The most common is by sale, which involves the exchange of money or other items with legal value for the property. It is also possible to transfer ownership through a deed of trust or by gifting it to someone. Finally, ownership of land can be transferred by testament — a written will that names a person as the owner of a property.
Zoning and land use laws establish how property can be used, and they often include rules about building height and setbacks. They can also limit what type of businesses can operate on a piece of property. If a party steps over another’s property rights, it can lead to expensive legal battles.
Landlord and tenant law is a major part of real estate law, and it addresses issues such as lease agreements, eviction rules, and whether or not a piece of land is considered inhabitable. Landlords and tenants have a variety of rights that must be protected by the law, including the right to quiet enjoyment of the property and the obligation to make routine repairs and keep up with maintenance. These laws also protect the environment by ensuring that a property isn’t being damaged by unauthorized alterations.
Unless you’re a real estate paralegal or have previous work experience at a title insurance company or a bank that originates mortgages, you may not be familiar with many of the terms used in real estate law. However, being able to recognize some of the most important real estate law terms can help you avoid some of the most common and costly mistakes in property transactions.
When someone says that a house needs TLC, it means that it needs a significant amount of tender loving care in order to be ready for sale. This is because TLC homes will require a lot of money and time for repairs and renovations.
A zoning ordinance is a set of laws that governs how land can be used. It establishes limitations for building height, setback requirements and other factors that impact the usage of a piece of property. Zoning ordinances are often regulated at the local and state levels.
Zoning ordinances are often regulated by the local and state governments, but they are also sometimes established by private entities. In some states, it is illegal to sell or lease property without having a zoning ordinance in place.
An easement is a legal right that allows someone to use another person’s property for a specific purpose, such as accessing a shared driveway. The right to use an easement can be granted or taken away, depending on the circumstances.
If a home buyer wants to purchase a property, they will sign an option agreement with the seller. This document gives the buyer an exclusive opportunity to purchase the property for a specified period of time. If the home buyer decides not to purchase the property, they must forfeit their option.
Puffing is a term that refers to making exaggerated claims about a property in an effort to get more attention and potential buyers. This is a common practice in real estate, but it can be illegal under some circumstances.
Comps is shorthand for “comparable sales.” This is a term that real estate agents use to describe properties that have sold in a given area. Homebuyers and sellers look at comps to help them determine how much to offer on a property and how much to list it for.
Commingling is a legal or illegal practice that occurs when one party to a real estate transaction deposits the money they received into their own personal account rather than into an account dedicated to the property in question. This is a violation of real estate law and can result in serious fines or even criminal charges, depending on the situation.
A warranty deed is a type of deed that guarantees that a home buyer’s title is free and clear of any liens or mortgages. This is one of the most important real estate law terms to know, as it can protect a home buyer from a variety of legal issues that could arise after the purchase of a property.