Q: What are Points?
Q: What is the Prime Rate?
Q: What is Home Equity?
Q: Do real estate forms have to be notarized?
Q: What is the difference in a warranty and a quitclaim deed?
Q: What does tenancy by the entirety mean?
Q: What does tenancy in common mean?
Q: What is a disclosure statement?
Q. What is an escape clause?
Q: What is a closing?
Q. What is meant by the term “contingency” in a sales contract?
Q: Who is the grantee and grantor?
Q: What is hypothecation?
Q. Why shouldn’t I price my house a little high, since I can always drop the price later?
Q: What is PUD?
Q: What is Truth-in-Lending?
Q: What is the Real Estate Settlement Procedures Act (RESPA)?
Q: What are Points?
A: Points means prepaid interest assessed at closing by lender. Each point is equal to 1 percent (1%) of the loan amount. Three points on a $ 100, 000 mortgage loan would cost $ 3,000.
Q: What is the Prime Rate?
A: The prime Rate is the interest rate that financial institutions charge their most creditworthy customers. This is a key interest rate, used as a benchmark within the financial services industry. The Prime Rate usually changes when the Federal Reserve Board increases or decreases the target fed funds rate, which is the interest rate banks charge each other for overnight loans.
Q: What is Home Equity?
A: Home Equity is the difference between what it would sell for in the current market and you currently owe on your home. For example, if your house could sell under current market conditions for $200, 000 and you owe $100, 000 then you would have $ 100, 000 in Home Equity.
Q: Do real estate forms have to be notarized?
A: Most real estate forms must be notarized to be recorded in the land records. Examples are deeds and mortgages. Forms that will not be recorded generally do not have to be notarized, such as a lease form.
Q: What is the difference in a warranty and a quitclaim deed?
A: A warranty deed assures the buyer that the Seller will defend his title to the property from all other persons. A quitclaim deeds conveys whatever title the seller owns but with no warranty against the claims of others.
Q: What does tenancy by the entirety mean?
A: Tenancy by the entirety is a joint form of ownership of property acquired by husband and wife during marriage. On the death of one spouse, the survivor becomes the sole owner of the property.
Q: What does tenancy in common mean?
A: As opposed to joint tenancy, when there are two or more individuals on title to a piece of property, this type of ownership does not pass ownership to the others in the event of death.
Q: What is a disclosure statement?
A: A disclosure statement, as used in the real estate context, is a form the seller of property must complete and provide to the buyer disclosing to the buyer all defects and various other information about the residential property.
Q. What is an escape clause?
A. An escape clause, also known as a kickout or knockout clause, is a provision that allows the party to void the contract. For example, the seller may retain the right to look for a more favorable offer, with the original purchaser retaining the right, if challenged, either to firm up the first sales contract (such as by waiving a contingency) or to void the contract. As another example, sellers might insist upon an escape clause in a contract that hinges on the buyers’ selling their home.
Q: What is a closing?
A: Although this term may mean different things in different states, the "closing" is a meeting where all of the documents are signed and money changes hands.
Q. What is meant by the term “contingency” in a sales contract?
A. Sales contracts typically contain several “contingency” clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is unable to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase. Among other common provisions in the “subject to” section are termite and other inspection issues and the purchaser’s need to sell a current home first.
Q: Who is the grantee and grantor?
A: Grantee - The person to whom an interest in real property is conveyed.
Grantor - The person conveying an interest in real property.
Q: What is hypothecation?
A: Hypothecation is the act of pledging real estate as security without surrendering possession of the property.
Q. Why shouldn’t I price my house a little high, since I can always drop the price later?
A. That’s a strategy that sounds good – but, in fact, is more likely to result in a lower price. Here’s why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are houses at that higher price level, which are almost certainly larger or have newer/more luxurious features. So the overpriced home is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it’s overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price – and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.
Q: What is PUD?
A: PUD, or planned unit development, is a residential project with mixed land use and high density that eliminates side-yard setbacks.
Q: What is Truth-in-Lending?
A: A federal law that requires lenders to fully disclose, in writing, the terms and conditions of a mortgage, including the annual percentage rate (APR) and other charges.
Q: What is the Real Estate Settlement Procedures Act (RESPA)?
A: A consumer protection law that requires lenders to give borrowers advance notice of closing costs.
