The Language Of Real Estate Law

Buying a home is a huge undertaking. But unfortunately, too often potential buyers find themselves being bullied into signing mortgages that they really can’t afford because they don’t understand the language involved and are too nervous to ask for explanations before signing on the dotted line. It is important that you become as familiar as possible with the language of real estate law and lending practices before you purchase a home. Here are some of those key terms most frequently used:

The Buyer: The homeowner is both the buyer and the borrower in terms of real estate. The buyer is taking the money from his lender and using it to purchase his new home.

The Lender: Any entity who loans money in exchange for a greater return is considered a lender. When it comes to purchasing property, banks are a primary example of the lender because they provide the buyer with money that he must pay back over time with added interest.

The Secondary lender: If the loan given to the buyer by his lender (usually the bank) is not enough to cover the cost of his home, then he will need to borrow money from another entity. This second unit is then considered to be the secondary lender. Just like the primary lender, it has loaned the buyer money with the expectation that he will repay the amount with interest.

Counter Claim: When entering foreclosure, the buyer is essentially being sued by the lender for the amount that he owes. The homeowner can then, in turn, make a counter claim and sue the lender for illegal actions that took place in the borrowing or repayment process.

Foreclosure: An attachment on the buyer’s mortgage allows the lender to repossess the buyer’s home if the homeowner fails to make interest and/or principal payments on his mortgage.

Lien: A note or promissory that gives a creditor the right to secure the payment of an owed debt by the sale of the homeowner’s property. If the homeowner has multiple lenders, then he will have multiple liens on his home.

Mortgage: This is the contract between the borrower and the lender that serves as an obligation for the repayment of a debt. Often, you will hear people talk about their mortgage payments. Essentially, this is the amount that people owe the bank each month as a part of the repayment plan for the loan used to pay for their homes.

Mortgage Arrearage: When the homeowner falls behind on his payments and is unable to repay his debt to the lender, that past due amount becomes the arrearage.

If you are still unsure about all of the legal responsibilities associated with purchasing a home, then it can be helpful to contact a lawyer in your area. Or, if you have already purchased a home but find that you are struggling to make your monthly payments, then it is also in your best interest to consult an attorney before you fall too far into debt. A qualified attorney will be able to review your mortgage and loan to assess if any illegal actions took place, and then provide you with your best options for moving forward.

The Importance of Lawyer in Commercial Real Estate Law

Rights and duties are the two sides of the same coin. While a citizen enjoys the rights granted by the state or country of residence, some laws too are formulated for the easy functioning of routine and specialised transactions. Whenever a person engages in any sort of a transaction be it a transaction of exchanging goods, products, services or any other intangible asset, the person sees law being involved for the smooth governing.

Real estate or property is one such asset where maximum transactions take place with involvement of sizeable capital. Governing such commercial property transactions is the commercial real estate law which comes into force when any person engages into any activity dealing with land for commercial purpose, office, factory, warehouse, hotels, complexes, commercial activity centres, space for rent purpose etc.

This real estate contract or commercial real estate law governs and states all the matters that are linked with a said property deal that include:

the value of the said property

period of time for deal

clauses and conditions that the involved people or party must abide by and fulfil

pledge and assurance from the parties involved for a certain conduct

penalties if found guilty of violation of the said rules

Dealing with such commercial real estate law may not always prove uncomplicated and easy and it is best advised to consult a commercial real estate lawyer for right counselling and guidance. A law is always a myriad affair for a layman and engaging or entering into a contract needs sound knowledge about the ins and outs of such laws and governing principles. Accurate and precise direction is sought for in such circumstances and there is nothing better than taking the services of a commercial real estate lawyer who comes with the knack and skill of such applicable and governing laws.

Just as a compass provides the right direction and eases out the journey, a commercial real estate lawyer acts as a bridge between the law and the people and facilitate property deals that are feasible in the eyes of the laws and the law-makers. These commercial real estate laws not only govern the property dealings but also keep a tab on the ways and means of developing a land or a property for commercial purposes. If a party proposes to construct a commercial centre on a said land, the party should make sure that no laws are violated and the construction takes place as per the prescribed laws by obtaining the necessary no-objection certifications and other permissions. Considering such vast formalities of a commercial real estate law, it is often in the interest of the dealing persons or the parties to solicit the services of such lawyers.

Benefits of consulting a commercial real estate lawyer

Ensuring your project legal right from the conception to the final deal.

Obtaining the necessary certification for avoiding problems in the future.

Avoiding the penalties if found guilty of some misconduct.

In-case of conflict with the parties involved, ensuring timely and conducive solutions.

A Brief Guide to Real Estate Law

The term real estate is one that we probably all associate with property, particularly buildings and homes, perhaps land as well, but in every day use it is far more common across the pond in the US rather than here in the UK. However, in the legal sphere the term is in standard use in the area of law known as real estate law – the law applying to all matters relating to the property market. The value of the property market itself is vast. Across developed countries in 2002, The Economist estimated the market to be worth $68billion (77% of which is the residential property market) therefore also valuing it at 17% more than the total financial assets of these countries. What’s more, for the individuals or companies involved in the market, property often amounts to their biggest single asset and in the case of residential property, more pertinently and emotively, their home. The laws surrounding real estate are therefore often complex and the stakes dealt with are high.

What is Real Estate

As mentioned above real estate in a broad sense equates to what we term as property in everyday parlance. More specifically however, it refers to what are known as immovable objects owned by a party as opposed to movable objects that that party can take with them. In reality this definition covers objects such as land, the buildings thereon and other static objects which are attached to the land (or buildings), including crops and other natural resources found on that land. Conversely the objects which are not static come under the banner of possessions. In addition to the physical elements of property the term also covers the rights that come with the ownership of that land such as the right to access it (or the air space above it), to mine it, to fish it etc. In some legal contexts, and particularly in the UK, the term can be supplanted with the term real property (or just property) and instead real estate can be used, for example under probate law, more specifically to refer to a person’s share in property or real property at the time of their death.

What Does Real Estate Law Concern

Real estate law is therefore the area of law that deals with these estates/properties, the immoveable objects that are attached to them, any interests in them and the rights that come with them, although it can reach slightly outside of this (immovable object) brief when dealing with legal issues surrounding portable homes such as boats, caravans and mobile homes. It comes under the wider area of law know as property law (although there are also many overlaps with contract law in practice), which itself concerns the rights that people have to objects that belong to people, and falls mostly under common law (law determined by precedents). The other area(s) of property law not covered by real estate law relate to the (non-fixed) possessions mentioned above or as they can otherwise be known chattels.