What are the Various Terms Related to Real Estate Transactions?

Do you want to buy or sell a property? Keep in mind that transactions involving properties involve a lot of paperwork and you need to have a proper idea about the various documents that are necessary for the process. There are many other things associated to the process as well. Read and know about the different terms related to real estate transactions.

1. Quit Claim Deed

A quitclaim deed is a document that transfers ownership of property without transferring any legal rights. A quitclaim deed does not transfer any interest in the land being transferred. In order to transfer title, the seller must sign a warranty deed. A quitclaim deed is commonly used to avoid recording fees and to transfer ownership of property without having to go through the hassle of selling the property.

It is possible for you to get a free Quit claim deed form in all those websites where legal templates and forms are available free of cost.

2. Down Payment

The down payment is the amount of cash that a borrower puts down when purchasing a home. The down payment is often 10% of the total price of the home, although some lenders allow larger down payments.

3. Recording Fees

Recording fees vary depending on where you live. There may be a fee to file the documents with the county recorder’s office, and then there may be additional fees if the transaction involves the sale of a home.

Generally, a quit claim deed in Iowa is used in order to avoid the payment of the recording fees and save money in the process.

4. Real Estate Agents

Real estate agents help people buy and sell homes. An agent helps buyers find houses to purchase, negotiates contracts, and assists sellers with listing their homes. Most states require real estate agents to be licensed.

5. Home Inspection

Home inspections are performed before buying a house. Inspectors check the electrical system, plumbing, heating/cooling systems, roof, foundation, appliances, and other aspects of the house.

Home Inspectors offer a wide range of services including residential and commercial inspections, for the purpose of not only checking compliance with building codes, but also to assess whether there are any problems in relation to an equipment or furnishings system.

This means that one can have full inspection of various parts of a home, as much as possible. Home inspectors can also inspect the surroundings of a home, if required.

6. Mortgage Process

Mortgages are loans taken out to pay for a home. Mortgages are generally given to borrowers who want to borrow money to buy a home. Borrowers get mortgages from banks, credit unions, mortgage companies, and other financial institutions.

7. Warranty Deed

A warranty deed is a document that conveys full ownership of real estate. A warranty deed is recorded at the county recorder’s office. If the buyer wants to sell the property later, they would have to record a warranty deed.

It is possible for you to get templates of warranty deeds free of cost at free legal forms websites online.