Welcome back to our informative 7-part blog series where we aim to demystify the complex world of real estate for you. So far, we have broken down property types, sales process terminology, purchase process terms, and financing terminology.
Today, we turn our focus to “Legal Jargon in Real Estate”. It is crucial to comprehend these terms as they play a vital role in real estate transactions. This blog post will guide you through some of the most commonly used legal terms in the real estate sector.
List of Legal Terms
- Deed – In the realm of real estate, a deed is a significant document that acts as proof of ownership of a property. During the closing process of a transaction, it is transferred from the seller to the buyer.
- Title Search – This is an investigation of historical records related to a property. It covers details like past ownership, liens, outstanding claims, or any other legal complications to confirm the seller’s right to transfer ownership.
- Lien – A lien is a legal claim on a property that allows the person or entity who has placed the lien to recover a debt from the property’s proceeds if it is sold.
- Easement – This is a legal provision that grants someone the right to use another person’s property for a specified purpose. For example, easements are often given to utility companies to run power lines or to neighbors to access public roads.
- Zoning Laws – These are regulations that dictate the use of property in specific areas, such as residential, commercial, or industrial.
- Eminent Domain – This is a legal provision that allows a government or its agent to seize private property for public use, with compensation provided to the owner.
- Property Tax – Based on a property’s value, a tax is levied. Typically, local governments use this tax for revenue.
- Covenant – In a written contract or a deed of real property, a covenant is a promise that is legally binding. The document in question is then said to be “covenanted”.
- Foreclosure – This is a legal process in which a lender seeks to recover the balance of a loan from a borrower who has stopped paying by forcing the sale of the property used as collateral for the loan.
- Power of Attorney – This is a legal document where one person (the principal) gives another person (the agent or attorney-in-fact) the power to act on their behalf in property, financial, and other legal matters.
- Lease Agreement – Such an agreement is a contract between two parties – the lessor (owner) and the lessee (user). It outlines the terms under which the lessee can rent property from the lessor.
- Eviction – This is a legal process that landlords may employ to remove a tenant from a rental property.
Having a solid grasp of the legal jargon in the realm of real estate is of utmost importance for individuals engaged in property transactions. Whether you are a buyer or a seller, understanding these terms will empower you to navigate the intricate landscape of real estate with confidence and clarity.
Stay tuned for our upcoming posts, where we will delve deeper into the intricate processes of Home Inspections and Closing Procedures. We will provide you with valuable insights and expert advice to ensure a smooth and successful real estate journey.
Part 1 – Exploring Different Types of Property
Part 2 – Understanding Real Estate Sales Process Terminology
Part 3 – Making Sense of Real Estate: Breaking Down Purchase Process Terms
Part 4 – Uncomplicating Real Estate: Your Guide to Financing Terms
Part 5 – Understanding Legal Jargon in Real Estate
Part 6 – Understanding Home Inspections Terminology
Part 7 – Guide to Real Estate Closing Process Terminology
