More Real Estate Terms You Should Know
A binding statement in a real estate transaction document made by either buyer or seller that states the status of any potential legal issues with the property. For example, that the seller is not in active bankruptcy, that there are no liens against the property, or that the seller owns the title.
The responsibility of the potential purchaser or mortgage lender to conduct property examinations and all related procedures with a reasonable, consistent standard of inspection.
The value of particular aspects of the property that are physically destructible; basically what it would cost to replace these aspects in the event of total or partial destruction to the premises.
The market value of a property in relation to the total amount of money borrowed in a mortgage loan. You would write this as L/V, or [Loan amount] / [Property value].
A planned course of action that is based on particular real estate market dynamics. For example, studies have shown that an overwhelming majority of homebuyers check out online listings, so an effective strategy may be to have your property listed on Zillow or any other sites that use MLS data.
Amendments to purchase and sale agreements that affect your rights. Attorneys often add these addendums in because they expand on provisions such as buyer’s obligations or seller’s warranties without having to revise every section of the standard form.