Real Estate Curve

Real Estate Agent – A licensed real estate salesperson. Real estate agents work under the supervision of a real estate broker and are licensed by the state/province to perform real estate services for a fee.

Real Estate Broker - A real estate professional licensed by the state/province to sell real estate, and to supervise other licensees, both salespersons and brokers. The principal broker of a real estate business is generally responsible for the acts of the licensees under him or her. The real estate broker’s license is often more difficult to obtain than a salesperson’s license, sometimes entailing a minimum work experience period and a more extensive test.

Title – (1) the right to ownership of land or personal property; (2) the rightful means under which one claims ownership or a possessory interest in land; the union of all elements of ownership; (3) the written evidence of ownership.

Power Of Sale - The contractual right of a lien holder to sell property serving as collateral for a loan or other obligation without judicial action in the event of a default.

Power Of Attorney – a written instrument whereby a principal grants certain powers to an agent (the attorney-in-fact) to act on the principal’s behalf in certain situations for a specific period of time. The person so named need not be a licensed attorney, but does bear a fiduciary duty to the principal.

Foreclosure - a legal process in which, against the wishes of the owner, real property is sold to satisfy a public or private debt for which the real property has been pledged as security.

Amortization Term – the time required to pay off a loan with specific periodic payments. For example, many home mortgage loans have an amortization term of 30 years.

Amendment - a modification of an agreement that does not substantially alter the essence of the agreement.

Assessment - (1) same as assessed value; (2) the actual amount of the property tax; (3) a special charge to a property owner by either a taxing agency or a homeowners’ association.

Buyer’s market – a casual term indicating a market in which the supply of property exceeds the supply of willing and able buyers.

Sales Contract – a written or oral agreement that sets forth the terms of a transaction agreed between buyer and seller. A sales contract involving the sale of real property must generally be in writing to be enforceable.

Present Value – a method of arriving at an appropriate price or value today for the right to receive either a level cash flow over time (present value of annuity), or a lump sum later in time (present value of 1). The essence of the concept is that money received today is generally preferred over money received later. The quantification of that preference is what determines the prevailing rate of interest at given time.

Closing day – what an exciting day! Buyers have the option of checking their new home prior to closing by doing a walk-through. The new owner will be checking to ensure that the home is in as good condition as when the contract was ratified and that all agreed appliances have been left.

Usually the former owners have moved and hopefully the place has been well cleaned. But sometimes, due to circumstances such as difficulties with schedules, the place isn’t as immaculate as it should be. Owners should do their best to leave the home as impeccably as they can to avoid difficulties with the closing.

Buyers shouldn’t become discouraged if they notice things like picture marks on the walls or a few nail holes. Don’t forget your new home will soon be filled with your furniture and pictures! And it’s amazing what a little paint can do to spruce up a room.

It is good practice to leave the home looking, as you wanted it to look when you were the buyer. At this stage of the game you don’t want to run into difficulties – you’re almost there. Make sure the property you’re leaving is “broom clean” and free of debris and trash and that the buyer’s first look at his new home is a pleasant experience.

Be Prepared For The Closing Clearing Liens Closing Questions
Closing Tips Dealing With Liens Delays at the Closing
Do I Worry About Closing Dates On Closing Day

All of your future plans as a buyer or seller revolve around the closing day, so it is indeed an important day to keep at the forefront of your mind. Closing day is the day that title irrevocably changes hands, the day that the sellers receive their money and give up vacant possession of the house to the buyer.

The closing date is negotiated as part of the sales contract. The timing of the closing date may be of vital significance to the sellers. They may have bought another property and may need the funds they receive from selling their house to complete the other deal. The buyer also may be committed to vacating their present home at a certain time and be concerned that the closing happens before a certain date.

There can be unforeseen and unavoidable delays in getting agreed upon repairs done or in getting financing in place. If you do find yourself in a position in which you feel that you may not be ready for closing on time – immediately contact your Realtor®. Your Realtor® will contact the other parties Realtor and something can usually be negotiated that will solve any problems created. The other party may be flexible as to the closing date. The buyer may accept a cash settlement in lieu of repairs.

Every problem has a solution and it is part of your Realtors® job to help you find those solutions!

Most of us find that major changes in our lives are easier if we plan ahead. The time just before the planned closing day is often spent making arrangements for the impending move.

There are utilities and mailing addresses to be changed, movers to be arranged and many other details to be taken care of. While it will indeed make your move easier if you are well organized, please hold in mind that the closing may possibly be delayed.

Any one of the parties concerned in the closing may cause a delay – there may be a delay from a financial institution or perhaps the conveyancer has unearthed a snag that needs to be dealt with. So keeping in mind that delays are possible when you make your moving plans may save you some physical or financial inconvenience. Your Realtor® will let you know about any potential delays as soon as they come up.

A lien is a legal claim against a property. A lien can be put against a property by anyone who is owed money by the property owner.

The lien holder may be a contractor or a former spouse. The lien holder may even be deceased.The lien stays with the title – regardless of who owns the property. This is the reason why title searches are essential.

In order to clear a lien, it must be paid, the lien holder (or his executor) must “sign off” or a bond must be posted. Posting a bond would be done most often when the present owner of a property wishes to sell but is disputing the validity of the lien.

The owner can post a bond, thereby releasing clear title to the house and then deal with the lien holder in court. When someone signs off, it generally means that they sign a “quitclaim” deed. Signature of this deed means that the lien holder releases any rights he may have, without laying claim to the property.

If a lien is discovered against a property you wish to buy or sell, your Realtor® will be able to advise you as to your options.