hen buying or selling a when the buyer will occupy the
property, it always helps property, etc.
to have a basic
understanding of real estate 3) Contract for Deed - a written
terms. In this on going series of document which provides that Deed
articles, we take a look at does not pass to the buyer until
definitions starting with the final payment has been made.
"condominium." In the event of default by the
buyer, the property reverts to
1) Condominium - A type of the seller. (One sees these
ownership in real property where occasionally. I've seen them when
all of the owners in a collection an owner was financing the sale
of properties jointly own of raw land for a buyer.)
everything except the interior of
each property. Accordingly, the 4) Deposit, or Good Faith Deposit
jointly area is run by a - an amount of money tendered by
homeowner's association, which the buyer at the time a contract
can assess fees to the owners for offer is made on real property.
improvements, etc. The contract spells out who holds
it, and circumstances under which
2) Contract, or Sales Contract, the seller gets it, and
or Contract of Purchase and Sale circumstances under which it's
- the agreement between buyer and returned to the buyer. Typically,
seller. In most jurisdictions it the seller gets it as part of the
must be in writing in order to be purchase price at settlement, or
enforceable. It covers such as liquidated damages if the
things as the identity of the buyer defaults. The buyer usually
property, the purchase price, any gets it back if a condition of
conditions of the sale, the settlement is not met.
settlement date or escrow period,
5) Deed - the written document need to forclose on real property
which conveys title to real used as collateral for a loan.
property. Some states are
"record" states and ownership is As you can image, there are many
defined by the deed's being real estate terms for which you
recorded at the courthouse in have a general understanding. In
which the property lies. our next article, we continue
with the terms starting with
6) Deed of Trust - the document "Easement."
which allows a third party to act
for the lender should the lender
About the Author:
Raynor James is with http://www.fsboamerica.org - providing homes for sale by owner, "FSBO", properties. Are you thinking, "Should I sell my home?" Visit http://www.fsboamerica.org/seller.cfm to sell your home sale for free for one month.
Source: www.isnare.com
