Posts Tagged ‘estate’
When buying or selling real estate, it’s essential to understand what ownership rights are transferred at the time of sale. Ownership of real property takes a number of forms, each with its own set of rules and expectations; by developing a clear understanding of the terminology used to describe various types of ownership, buyers and sellers can ensure that their real estate transactions run smoothly and according to plan.
Sole Ownership
The simplest form of property ownership, sole ownership grants one individual complete rights over the property in question. This is the form used when a single person purchases a home or piece of real estate.
Tenancy by the Entireties
When a married couple purchases real estate together, they are granted tenancy by the entireties by many states. This means that each party holds one-half interest in the property, but neither can dispose of or otherwise abridge the right of the other to the property. For instance, a second mortgage or lien against the property would require the consent and signature of both members of the couple; this prevents either individual from disposing of the property against the wishes of the other.
Tenancy in Common
This form of ownership allows multiple people to own a percentage of the same property. While the percentage owned may vary, each person has an equal right to the property during their lifetime; for instance, in most cases someone who owned 50% of a home could not legally prevent the 25% owners from residing in the home as well. If one of the tenants in common dies, their interest in the property passes to their heirs; it does not devolve to the other tenants in common. Thus, these arrangements can last for several generations.
Joint Tenancy
The real estate market in the United States of America is regulated by certain federal and state laws. The Truth in Lending Act is an important part of these laws. The three-day cancellation rule is a provision described in this act. As per this rule, you get the right to cancel a loan contract where you are using your primary residence as collateral. You have three business days to do this. However, in order to take advantage of this specific rule, there are several things that you need to know. You will find the following information very helpful in this regard.
The Three Conditions
The 3-day cancellation rule in the real estate market is applicable only if you meet these three conditions.
• You have received two copies of the Truth in Lending notice. The notice describes your right to cancel the loan in detail.
• You have also received the Truth in Lending Disclosure form, which outlines the payment schedule, amount financed, finance charge, and the annual percentage rate.
• You have signed the loan contract.
Inform Your Lender
If you fulfill the above mentioned three conditions, the first thing that you have to do is to inform your lender about your decision that you want to cancel the loan contract using the3-day cancellation rule of real estate. You have to inform this in writing. So, write a letter and mail the same (you can also fax it) to the lender, making sure that it will reach the lender before midnight on the third day. Oral intimation either face to face or on phone will not be considered in this regard.
During Those Three Business Days
A Real estate contract basically means the title transfer and transfer of ownership from one individual to the other. The two parties involved need to fulfil certain conditions so as to make it a completely legal document. The purchaser of the property needs to present bank verification notes to the seller of the property. The contract is entered and the transaction is closed then and there, if all the legal formalities are fulfilled.
Reading and understanding the Real Estate Contract is the initial step towards understanding the terms and conditions. Many of the individuals just go through the agreement without understanding the legal jargon and this form of carelessness could lead to many problems at a latter date. Before signing the contract, read between the lines and understand the deeper meaning of the contract.
It is of essence that you understand what goes into the making of a Real Estate Contract. A Real Estate Contract is a legal document. You need not be an authority on legal matters for understanding the contract agreement. With a little care and caution, you could go ahead and sign the agreement with self belief and confidence.
1) The Real Estate Contract should clearly state the names and addresses of both the parties involved that is the purchaser as well as the seller. The individuals should have completed eighteen years of age and should be mentally fit. This is absolutely important as otherwise the contract would not be approved legally.
2) A real estate contract can be executed only with mutual consent. It means the purchaser of the property is ready to buy the property at the price specified by the seller and is fully agreeable to the terms and conditions of the agreement