Purchasing a property can be a daunting and confusing process, and it is so, especially for new homeowners who do not know real estate and its law. Real estate law is a complex term as it involves multiple complicated steps. Not only this, but the language used is also very confusing.
So, what is real estate or real property law? Well, it is the area of law that directs purchasing, handling, and selling land. Besides, it also governs how people get property and what people can do with it. You will find numerous aspects of real estate law like titles, deeds, zoning, estate planning, purchase financing, and taxes. Do not get it right? So, below, we have shared some information to help you with everything related to real estate law. Our writing will demystify the process, and you can understand the real estate law and terms related to it with ease. Therefore, let us begin the exploration now.
The terms associated with the real estate law
Here are some of the confusing terms you might encounter when dealing with real estate law.
- The title is nothing but the official legal word that depicts the landlord of the purchased property.
- Foreclosure – When a debtor cannot manage to pay back the mortgage amount, the lender takes over or gains control of the entire property. This situation is referred to as foreclosure.
- A mortgage is when a lender lends money with interest in exchange for the title on a property.
- Closing – The official meeting for giving the possession of land or property is known as closing
- A deed is a document that offers someone a legal claim. It is an official document that gives an ownership interest on a property.
- Escrow is coined for property or money kept with a third party as custody.
When learning about real estate law, you must look at the RERA Act. It is nothing but a Real Estate Regulatory Act. It says that the housebuilders must deposit about 70% of the capital in the Escrow account. It will make sure the clients that the money does not get beguiled to other projects. Not only this, but RERA Act has the below features as well.
- The RERA Act ensures that the builders inform the buyer about all the aspects of the project to establish transparency.
- The builder can take 10% advance of the total cost of the project.
- A crucial benefit of RERA is that builders can never demand extra money from home buyers for the excess area.
- According to this act, if builders cannot hand over the project on time, they have to pay 2% interest above the lending rate.
- You have to complete all the clearances before selling the property from the buyer and the builder’s end.
Summing it up So, these are some vital things to know about real estate law. Understanding the above-discussed information will keep you knowledgeable about real estate law, and you will get benefits when you buy or sell a property. However, it is recommended that you consult a real estate attorney in case of matters of real estate. Ward K Johnson Law Firm has the best real estate lawyers!