A warranty deed is when a person selling a plot of land, a house, or a property, can guarantee they own the rights and title of the land and that this person is legally allowed to sell the property to you.  Warranty deeds are not the same as quitclaims as a quitclaim is when the seller believes they own the rights to the land but cannot guarantee a clean title.

The purpose of the warranty deed is to give you some assurance as a home buyer that you will be able to buy the property without any issues.  But even with a guaranteed warranty deed in place, it is still wise to have a title search done by a reputable and independent title company.  By having the title company do a complete search for potential problems you have a second set of eyes and don’t need to just take the seller’s word for it.

Warranty deeds are normally transferred from the seller to the buyer during the escrow process, and if everything follows regular practices the transfer will be recorded by the county recorder’s office.  This is one of the places a reputable [Read more…]

Real property is defined as the ownership of a property (also known as a parcel), including the land and everything that is attached to the land or property whether it is natural or artificial.

Basically anything that is physically nailed down to the property or grows on the property and has roots in the ground can be defined as real property. A potted plant that is not growing in the ground is not real property whereas a plant whose roots have breached the ground surface is real property.

Common examples of real property include:

• Your house
• Flowers, trees, and crops that grow in the ground
• Sheds, gazebos, or anything with a foundation
• Doors and windows attached to the house
• Ponds and waterways confined to the property boundaries
• Any mineral or resource below the ground

What real property allows you is the right to lease, modify, rent, and do whatever you want with the property.  On the contrary, anything not under the umbrella of real property is defined as personal property. This generally includes anything that is not nailed down or can be physically moved, such as your personal possessions.

You’ll come across the phrase “real property” in your property searches as well as a title search that evaluates claims on “real property”, which is why it’s important to understand what real property is.

Now that you know what real property is, lets dive deeper into the differences between real property and personal property, and also learn what is included in real property taxes.

Differences Between Real vs. Personal Property

The difference between real and personal property is that real property encompasses everything that is native or attached to the land and personal property is what you can take with you that is not attached to the land.

For example, any raw building materials such as wooden [Read more…]

An escrow agent is the person who handles all escrow services when you buy or sell a home, such as distributing money between the buyer and seller and managing all of the necessary paperwork to help you close.  Escrow agents help make sure that all financial documents are completed in a timely and accurate manner.  They also may assist in a number of other jobs, such as writing the deed, initiating a title search, and finding title insurance. 

Escrow agents are typically agreed upon by both your lender and the seller to help manage the transaction. By acting as a neutral party, escrow agents represent the interest of both the buyer and seller to help minimize risk in real estate transactions for both parties. 

But, you still may be wondering who an escrow agent works for and who hires an escrow agent.  Let’s dive in to learn more about who your escrow agent works for, what their job is and other questions you may be thinking.

Who Does the Escrow Agent Work For?

The escrow agent works for both the buyer and seller and is typically agreed upon by both parties or their agents. The primary interest of the escrow agent is to handle all of the terms and contingencies of a real estate contract and will help to ensure you have a smooth transaction.  [Read more…]

Your dream home is now listed as contingent.  While that sounds like a bad thing, it doesn’t necessarily mean you won’t end up being able to buy this property.

The term contingent doesn’t exactly come across as inviting, but it’s nothing to keep you up at night. Contingent is just a real estate term and below you’ll learn what contingent means in real estate, how it applies to a home sale, and what it means to you as a home buyer.

What does contingent mean in real estate?

Contingent in real estate means that the seller has accepted the buyer’s offer, and now either party is sorting through their responsibilities as laid out in the contract they signed before closing.

The term contingent is derived from the contingencies that are put in place by the contract. Those contingencies are in place to provide a legal out for either party if something goes wrong or if either violates their end of the contract.

For example, if the home inspection reveals an issue that the seller failed to disclose, or the buyer fails to come up with the cash to purchase the home, the contract can be void allowing either party to back out unless a solution is met. [Read more…]

A home inspection can be a pivotal part of your home buying or selling experience. It’s this very moment when the home’s health is confirmed, issues are revealed, and when renegotiations are common. No matter what side of the closing table you’re sitting on, it can be both an exciting and nerve-wracking part of the process.

It’s essential to familiarize yourself with the process in any case. That way, you know what a home inspector is looking at, what issues they may find, and what steps they determine must be taken. That’s what this guide is for. We’re going to take a look at home inspections so that you know exactly what to expect and can be ready for a quick and hassle-free closing.

What should a home inspection cost?

The average price of a home inspection is around $400. However, that number is based on homes that are 1,500 square feet or less.

Inspectors will generally start there and increase the price along with the size of the home. That might be $50 for every additional 500 square feet above 1,500, but it ultimately comes down to the inspector you hire.

Keep in mind that pricing is typically a lot more complicated. Features of the home, its age, and so on can all factor into what an inspector charges. [Read more…]

Whether you’re buying a house or selling, you’ll need to be aware of any potential issues with the property. Familiarizing yourself with the seller’s disclosure form will benefit all parties—buyer and seller alike.

What is a Seller’s Disclosure Form?

A seller’s disclosure form, also known as a property disclosure statement, is a document provided by the seller about their knowledge of the property—any historical and potential issues. The seller’s disclosure statement is essential to both the buyer and the seller.

As a buyer, you’ll want to be aware of anything that could potentially go wrong with the property. As a seller, you’ll want to be completely honest with your buyer, not only for the sake of honesty but also to cover yourself if an issue arises. Legal action can be taken if you lie on a seller’s disclosure (more on this later).

What Should a Seller’s Disclosure Include?

A seller’s property disclosure should include a full list of issues. The exact issues that need to be listed vary from state to state, so make sure to find out your state’s requirements. Some general problems with seller’s disclosures issues across the country include:

• HVAC
• Mold
• Pest infestations
• Water damage
• Leaks
• Foundational integrity issues
• Lead paint
• Asbestos
• Additions and improvement projects (without a permit)
• Any major repairs made by the seller or previous owners
• Insurance claims made

If there’s been a notable issue, it should be noted.

In the past, there have been underhanded attempts to pass off homes with issues to uninformed buyers. So be wary of shady sellers.

What if the Seller Lies?

[Read more…]