Real Estate

Archive for January, 2010

Real Estate Law In Plain English: What Is Marketable Title?

Marketable title sometimes called “merchantable title” is of much greater concern for the sale of real estate than with the same of personal property mainly because of the complex and sometimes arcane rules applicable to real property. Property law recognizes a myriad of interests and procedures in real estate including easements future interests leaseholds mortgages and adverse possession among others. For this reason it is quite likely that the interests in a given parcel of land will be in dispute the bank claims a mortgage over the real estate that was taken out by the previous owner the city claims the right to build a road across your land an easement etc. Even if these claims are in fact invalid the very fact that there is enough credibility to them to force them into court to resolve them could make your land quite difficult to sell. The absence of credible or serious claims against your full possession and quiet enjoyment of the land that you can then sell to a potential buyer is what is known as “marketable title”.

On the other hand if the claims against your title are substantial enough to make a reasonable buyer think twice before agreeing to purchase your property at anywhere near the going market price then your title is unmarketable. The consequence of this is that if the buyer finds out that your title is unmarketable after signing a real estate sales contract with you he can refuse to close the sale until you clear up the problem and there won’t be a whole lot you can do about it except either give him what he wants or wave byebye to him and his money!. Furthermore if the real estate sales contract states that “time is of the essence” then you have until the contractual closing date and not a moment longer to offer the buyer marketable title.

Following are the legal requirements for marketable title:

1Seller has actual title to the property in fee simple absolute the most complete form of real property ownership

2The title is free from encumbrances mortgages leaseholds etc.. If the property has encumbrances then a clear description of them in the sales contract should close this loophole.

3 The title is free from reasonable doubt. An examination of title records should reveal that there is no reasonable doubt as to whether the seller actually owns the property and whether or not there are encumbrances upon it that were not disclosed in the real estate sales contract.

DISCLAIMER: The foregoing is intended for reference purposes only and not as legal advice.

About the writer:  CyberProp is filled with real estate news property investments listed estate agents and real estate advice. With the click of a button we will provide visitors to this website with a wide selection of property for sale and property to rent in residential properties farms commercial properties vacant land business properties industrial properties holiday homes and retirement homes. CyberProp for property in South Africa.

Real Estate Auctions – When Should You Use Them?

Real Estate Auctions have been used to sell properties successfully for many years. Do they always work? No but if done in the right way they ALWAYS attract attention. They ALWAYS make a property stand out from other properties on the market.

There isn’t a magic formula that will always sell a property except price. An auction gives you the ability to use price as a way to attract buyers. However the majority of buyers that you attract are expecting a deal. So unless your property is in a hot real estate market or is unique and highly desired you need to expect to sell at a discount. You should expect to discount at least 10 and many times more.

If you’re considering selling by auction you need to realize that you will probably be giving up some equity for the convenience of selling fast. However time is money and it still makes sense for many sellers to use this method. Not to mention there have been many auctions that have received bids right at or higher than market value.

When should you use an auction?

1.On any property that you are willing to take at least a 10 discount. The bigger the discount the better chance for success.

2.On any property in a hot market. If you’re in a market where multiple offers are common for any listed property take advantage of that excitement and let buyers bid against each other in an open format.

3.On any good investment deal. If you have a property that needs to be rehabbed income producing property with good cash flow or any other type of good investment property. Investors buy based on numbers show them the numbers!

Up until a few years ago seller’s who wanted to sell by auction usually held a “live” auction on the property. This process requires hiring an auction company and paying hundreds and sometimes thousands of dollars in fees regardless of whether the property sold or not.

Along came the Internet and then Internet auctions for “stuff”. Now Internet Real Estate auctions are starting to take hold. One of the advantages of using the Internet is that it doesn’t require people to be onsite to bid. Bids can be placed anywhere a person has access to the Internet.

It’s understandable why real estate Internet auctions are becoming popular. They make this successful method of selling real estate accessible to many more sellers and investors.

About the writer:  Copyright Steve Gillman. To see a photo of the house we bought for 17500 and to get a free ebook on How To Save Thousands Buying Your Next Home visit: http://www.HousesUnderFiftyThousand.com

Real Estate Article: Why Do I Need A Real Estate Appraisal?

When it comes to buying real estate there are a few added expenses involved. One of those expenses that people often question is the appraisal. At a cost of about 400 some would rather save their money and they wonder why they are forced to fork out the cash to an appraiser.

After all if they are willing to buy the house then why do they need to find out what its worth? The real estate professionals obviously think it is valued correctly.

The reality is that no matter what type of property you are buying you need an appraisal. There are a few simple reasons for this.

First of all if you are mortgaging the property the lender will require it. A financial institution doesnt want to loan you 200000 for a house that is worth half of that. For this reason they do require an appraisal. The appraisal gives a lender an unbiased professional opinion as to the propertys value.

The next reason you need an appraisal follows along the same lines as the reason you get an inspection done. You dont want to buy a home only to find out 2 months later that it isnt worth what you paid. A home is the largest investment most people make in their lifetime. It is important to take the steps to protect yourself.

There are also other reasons that you may need an appraisal with your purchase. It can reduce your tax burden in some cases the IRS requires it and it also gives you a tool for negotiation. If the assessed value is lower than the asking price you suddenly have a reason for making a much lower offer. This same idea can help you to contest high property taxes. There are also issues that may arise in the case of a lawsuit if a proper appraisal wasnt done.

Whenever you take part in a real estate transaction you should hire a professional appraiser who is licensed in your state. The appraiser will come in look over the property compare it to other properties in the area and give you a professional unbiased opinion of what the property is worth.

The simple fact is that if you are thinking buying a property the small cost of an appraisal far outweighs the implications of not having one. It is quite possible that 400 will save you that cost many times over.

Your real estate agent may have a good idea of what the home is worth but they only look at the cosmetics of the home. They rarely see below the surface where problems that may really affect the value are. The appraisers value is based on all factors even the ones that cant be seen.

About the writer:  Austin Referral Realty is a real estate brokerage in Austin Texas. Search Austin MLS for property for sale in Central Texas.