What are the crucial real estate terms that must be known?

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.

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.

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.

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.

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.

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.

Conclusion

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.

Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. 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. 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.