If you are purchasing or selling a home, the chances are good you struggle with the meaning of descriptive real estate terms. Here are explanations and definitions for more terms.
1) Pre-Approval Lender Letter
Writing from a lender stating that a potential buyer has the approval to borrow a stated amount of money from his firm based on having documented all the personal information needed. Final approval is subject only to the lender’s receiving a copy of a contract to purchase real estate, a satisfactory appraisal of that real estate, and its underwriting department’s review of all pertinent information. In other words, the buyer qualifies so long as the property does and no changes occur. To read information how to determine potential buyer for your real estate, click here.
2) Pre-Qualification Lender Letter
Writing from a lender stating that a potential buyer can get a loan in a named amount. It typically states the price of the real property to be purchased, and what information the lender had when forming his opinion. When a lender has pulled a borrower’s credit file, his opinion is worth more than if he just based it on what the borrower told him.
3) Real Estate, or Real Property
Ground, any plants growing in it, any minerals under it, and any buildings or other improvements built on it.
4) Septic System
A self-contained means of disposing of sewerage which tends to intimidate city dwellers. This works very well in the soil which percolates well (water drains through it quickly). More elaborate septic systems are often needed in areas with heavy, clay soil and areas with a high water table. Some properties are unsuited for septic systems and cannot be built on until public sewer is available.
5) Title Insurance
Insurance which will compensate the insured for the value of his ownership or collateral position in real property if a person not thought to be a current owner materializes as an owner. (I’ve seen this come into play when the property was owned by many heirs a generation or two ago.). More information about Fundamentals of real estate economics can be obtained by clicking at http://50eastchestnut.com/fundamentals-real-estate-economics/
A single family attached dwelling unit with common walls.
7) A banker or mortgage broker
A banker or mortgage broker is one whose expertise lies in the investment residential real estate arena, someone who has expertise in getting financing on difficult deals. Often this will not be the banker you are currently using. You need to learn how to discover the exact steps in choosing and working with a quality banker.
8) A real estate-specific lawyer
There are lots of lawyers, but the one you want is someone with ten years or more of investment real estate expertise. Do not choose your lawyer based on price: that is the ultimate in false economy and could end up costing you thousands and thousands of dollars more in the long run when something goes awry.
In every case, the developer has to provide all the necessary documents to the buyer. This includes a purchase agreement, bylaws (can be proposed bylaws as well), a management and recreational agreement, parcel lease (where applicable), mortgages that might affect the title and a plan of the condominium.
10) Common Property
These are parts of land or buildings which are not owned individually. The Strata Act specifies the related responsibilities and details of how these are handled.