Good Morning! Heres your daily 4 common real estate terms and their definitions! 1. Closing Costs The fees, costs and taxes associated with the purchasing of a home, the borrowing of money and the preparation of necessary paperwork to finalize the sale. The total amount of the closing costs will vary depending on where the new home will be located, what type of property it is, the price of the home and the complexity of the transaction. It is extremely important that the buyer work closely with his/her buyer’s representative and lender and title company (although in states where attorneys are used, the attorney usually works with the title company) in the early stages of the home buying process to determine what these costs could be, since closing costs can easily represent thousands of dollars. There are four categories of closing costs: (1) discounts points to buying down the mortgage; (2) the costs of originating the mortgage; (3) taxes and other local fees; (4) the cost of documentation. 2. Dual agent A broker who works with both parties in a real estate transaction buyer and seller, landlord and tenant. All jurisdictions require dual agency to be disclosed to the parties to the transaction. 3. Earnest Money Deposit A deposit made by the potential home buyer to show that he or she is serious about buying the house. 4. Escrow A deposit of value, money, or documents with a third party to be delivered upon the fulfillment of a condition. For example, the earnest money deposit is put into escrow, held by the broker, bank or other party, until delivered to the seller when the transaction is closed.
Posted on: Thu, 11 Dec 2014 15:46:40 +0000
Trending Topics
Recently Viewed Topics
© 2015