Despite the existence of rules and guidelines regarding the acquisition of real estate properties in Florida, not everyone is familiar with the various terms used by experts in dealing with property selling and acquisition. Real estate agents and brokers are quite knowledgeable when it comes to the legal aspects of real estate, but an average individual might be hard-pressed in understanding the intricacies involved in closing a deal.
If you have no plans to hire a real estate agent or a broker in acquiring a residential real estate property in Florida, then it would best to learn all the terms involved in involved in one. Here are just some of the basic terms that you will encounter in any real estate deals, especially with acquisitions.
The Difference Between A Deed And A Title
The first two terms that you will likely encounter in purchasing a real estate property are deeds and titles. A title is simply a right to a partial or full ownership of a said property. In most cases, a buyer would not settle for anything less than a marketable title, which is a clean title without any encumbrances or title defects that is stated in its provisions.
A deed, however, is a written document that transfers the title of a property to its new owner. There are two types of deeds being used in real estate property acquisition, and they are:
1. Warranty Deed. This type of deed requires the seller to warrant or pledge that they are the real owner of the property and with provision that states that the property in question has no mortgage, encumbrances, or liens attached to it.
2. Quitclaim Deed. This type of deed states that the previous owner relinquishes all rights and interests they have in a property. This type of deed, however, does not guarantee a problem-free transaction as with the warranty deed, considering that the title might be invalid or may probably have some real estate problems with it.
Purchase Agreement
A purchase agreement is like a written contract submitted by the seller to the buyer that details the terms and conditions of the transaction. Commonly, a purchase agreement will detail info of the property acquisition, such as the property value, agreed price, down payment, mortgage agreement, and terms.
Other information included in the document may include the specification of the real estate property, such as zoning restrictions, taxes, conditions and requirements, and so on.
The term deeds, titles, and purchase agreements are just some of the terms commonly used in real estate acquisition in Florida. In truth, the rules and guidelines might vary depending on your location in the region; so it's best to check these out in advance with a real estate professional and increase your knowledge regarding real estate acquisitions through inquiry and in-depth research.
Vanessa Arellano Doctor
http://www.hometerra.com/home.php
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