For Buyers
What is the first step in buying property?
Answer: Obtain pre-approval for a mortgage to determine your budget, then start searching for properties that meet your criteria.
What is a title search, and why is it important?
Answer: A title search ensures the seller has legal ownership and that the property is free from liens or claims.
What is the difference between a deed and a title?
Answer: A deed is the legal document transferring title, and title represents the rights of ownership to a property.
What is earnest money?
Answer: A deposit made by the buyer to show serious intent; held in escrow until closing.
What are contingencies in a property purchase agreement?
Answer: Conditions that must be met for the sale to occur, such as inspections, financing, or appraisals.
Also read:
- https://truelegalexpert.com/30-key-questions-about-property-ownership-and-disputes-answered/
- https://truelegalexpert.com/40-detailed-faqs-on-property-law-for-legal-and-real-estate-issues/
- https://truelegalexpert.com/20-essential-questions-about-property-law-explained/
What is the closing process?
Answer: The last step in purchasing property, where the deed is transferred, funds are paid, and the buyer receives ownership.
What is property insurance, and do I need it?
Answer: Property insurance protects against damages and liabilities. Mortgage lenders usually require it for homebuyers.
What is a home inspection, and is it necessary?
Answer: A home inspection evaluates the property’s condition, identifying issues before purchase. It’s highly recommended.
Can I get out of buying a property?
Answer: Yes, only for specific conditions in the purchase agreement, such as failed contingencies or financing failures.
What is a property tax and how is it established?
Answer: A tax levied by local governments based on the property’s assessed value. Rates may vary by location.
For Sellers
What is seller’s disclosure?
Answer: A document where sellers disclose known issues or defects about the property to potential buyers.
What happens if I don’t disclose a property defect?
Answer: Failure to disclose known defects can lead to legal action by the buyer after the sale.
What is staging, and why is it important?
Answer: Staging is preparing the home for sale to make it more appealing, which may increase its market value.
Do I need a real estate agent to sell my property?
Answer: No, but agents provide expertise, market knowledge, and help with negotiations and paperwork.
What is a purchase agreement?
Answer: A legally binding contract between the buyer and seller outlining the terms of the sale, including price and conditions.
What is a contingency in selling property?
Answer: A condition that must be met before the sale closes, such as the buyer obtaining financing or selling their current home.
What is escrow, and why is it used?
Answer: Escrow ensures all conditions of the sale are met by holding funds and documents until the transaction is complete.
What is a short sale?
Answer: A sale where the property is sold for less than the remaining mortgage balance, usually to avoid foreclosure.
What happens during the closing process for sellers?
Answer: The seller transfers the deed to the buyer, pays any outstanding fees, and receives the sale proceeds after deductions.
What are capital gains taxes?
Answer: Taxes on the profit from selling a property. Exemptions may apply if the property was your primary residence.
For Landlords
What are a landlord’s obligations?
Answer: To make the property safe and habitable, to observe local laws, and to take care of the property.
What should be contained in a rental agreement?
Answer: Main terms such as the amount of rent, payment period, security deposit, maintenance duties, and guidelines for tenants
Can a landlord raise the rent whenever he feels like it?
Answer: No, but landlords must honor local laws and the terms of the rental agreement, which might include advance notice.
What is a security deposit, and how should it be handled?
Answer: A security deposit is money held to cover damages or unpaid rent. Landlords must follow state laws on collection, use, and return.
Can a landlord evict a tenant without notice?
Answer: No, landlords must follow legal eviction procedures, including providing notice and obtaining a court order if necessary.
Key Takeaways
For sellers: Disclose transparently, be aware of the process of closing, and have your property ready to attract the maximum value.
For landlords: Be aware of the legal responsibilities and have clear lease contracts with tenants. Rent and the tenant’s management should strictly comply with local law.
The following FAQs provide vital information regarding property law, which can ease out the processes of transaction and property management by all parties involved.