Real estate is filled with various terminologies, adding more confusion to the already convoluted procedure. Buyers will encounter phrases and words related to real estate that they have never heard before.
Not understanding them can cause more errors and complications. Whether one is selling or purchasing a property, knowing all the real estate terms is crucial. So, what are these terms? Let’s find out through this article.
1. Buyer’s Agent
Real estate brokers, or agents, are individuals who link all homebuyers with the property seller. In other words, these agents work as the bridge between the seller and the buyer.
But there are two real estate agents to take care of the deal. One agent is on the buyer’s side, and the other is on the sellers.
The real estate terminology contains the title “Buyer’s Agent” in it. Here, this term is pointed toward the real estate agent on the homebuyer’s side. On the seller’s side, they have the “Listing Agent” title.
In today’s world, mortgages have become the standard option for most homebuyers. It can let individuals buy their dream home without waiting for many years.
2. Adjustable-Rate Mortgage
When a person encounters the mortgage concept, they will also come across one of the main terms in real estate: “adjustable-rate mortgage.” This is pointed towards the loan, where the interest rates constantly change during the tenure. According to the market, a buyer might receive a higher or lower interest rate from all the initiation. The interval through which a particular alteration occurs is predetermined.
3. The Backup Offer
When an individual is interested in buying a property already under contract with another person, that purchaser can submit a backup offer.
They can do so when the first transaction fails or falls apart. According to the real estate terms, the “Backup Offer” should be negotiated. Any funds, such as earnest money, must be confirmed and submitted as the next offer in line. There can be only one backup offer because one cannot get a backup for the backup.
4. Home Examination
According to real estate law, people who make an offer on a residential property must schedule a home inspection or examination.
The inspector will check all the nooks and crannies and go through things like appliances, foundations, plumbing, heating, electrical, and walls. Be sure to get advice from the real estate agent on a home inspector.
If they discover some problem or issue, the buyer can negotiate with the sellers to fix it. Otherwise, they can lower the home’s purchase price for the buyer.
5. Title Insurance
When all the negotiations are completed and the property seller accepts the offer, the buyer will get a home title report in a week. Most mortgage lenders want all homebuyers to pay title insurance in the form of a closing cost.
All the title insurers check the public records to learn whether the home seller has the rights to the title. The records also help them learn if there is any lien on the property (unpaid taxes or a contractor). When the buyer has title insurance and loses the property because of a title dispute, it will be compensated through the owner’s policy. It will also help the buyer cover all the legal fees related to the dispute.
These are the various terminologies that could create confusion for buyers when purchasing a property. If someone wants to possess property in India, it would be best if they learned these terms and phrases before closing the deal.
Frequently Asked Questions
Why is home inspection/examination important?
A home inspection is one of the most crucial real estate basics that every homebuyer must opt for. The inspection can give you an idea of the condition of the whole property, both interior, and exterior.
What is the work of a real estate agent?
The real estate agent can connect home sellers and home buyers. In other words, they act as the bridge between them.
During the home-purchasing process, what should you do first?
You should get a pre-approval mortgage before proceeding further in the home-buying process.
How much time does it take to purchase a house?
It can take 10 to 12 weeks to purchase a residential property or home.
Disclaimer: This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. There are other various terms depend on each transaction/area. We expressly disclaim/disown any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.