What Laws Should I Consider?
LAWS, REGULATIONS & TERMS BUYERS AND SELLERS NEED TO KNOW….BEFORE….
Consumers selling or buying on their own without an agent need to know the following laws, regulations and terms or they could get into serious financial or legal problems!
Even when using an agent, you should use one who can describe these items, or learn them on your own. Just because you may see another seller or real estate agent say or do something does not make it legal. These items may seem trivial to some people, but keep in mind that sellers have lost up to even more than they were asking for their home in a discrimination case, for the words that they spoke to somebody! You will hear comments and see ads quite often that are a lawsuit waiting to happen. Don’t let it be you.
The Federal Housing Act, which makes it illegal to advertise any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status or national origin, or intention to make any such preferences, limitations, or discriminations. This is just a small part of that Act. You should also know how Age fits in as well as the rest of the act.
Please note the words “or intention”.
This would include words that you speak. Please also note the words “preference, limitation”.
Buyers and sellers should take the time to ask their real estate Agent to explain all the clauses in any listing or purchase forms….and also the proper way to fix, show, advertise And sell the property.
Buyers and sellers NOT using a real estate agent ….
Should retain an attorney to represent them during the whole showing/viewing/choosing Process, as well as during the selling/buying contract transaction and the inspections & closing. To be safe the attorney should be there anytime the property is viewed, inspected or discussed.
Consult an attorney when necessary.
There are over 2000 Real Estate Terms. Here are some of the most common that You should know if you are not using a real estate agent.
Abstract of Title, Acceleration Clause, Acceptance, Actual Notice, Ad Valorem, Agency, APR, Appraisal, Arbitration, Assessment, Assignee, Attachment, Bilateral Contract, Binder, Blind ad, Blockbusting, Breach, Building Code, Buydown, Capital gain, Caveat Emptor, Chain of Title, Cloud on Title, Color of Title, Collateral, Common Elements, CMA, Master Plan, Constructive Notice, Contract for Deed, Conventional Mortgage, Conveyance, Counteroffer, Covenant, Culpable negligence, Declatory judgement, Deed, Defeasence clause, Density, Depreciation, Discounting, Doc stamps, Earnest Money, Easement, Effect a sale, Eminent Domain, Encumbranmce, Equitable Title, Equity, Equity of redemption, Escalator clause, Trust account, Exculpatory clause, FREC, Exempt property, Expressed contract, Fannie Mae, FHA, Fee simple, formal contract, freehold estate, granting clause, PUD, Plat, Prepayment clause, easement by prescription, PMI, Promissory note, Hazard Insurance, purchase money mortgage, qualification, nonconforming use, obligor, offeree, option, origination fee, over-improvement, penalty clause, per diem, performance, L/V ratio, mechanics lien, mediation, meeting of the minds, millage, misrepresentation, mortgagor, MLS, Involuntary lien, joint tenancy, lease, liability, liquidity, liquidated damages, habendum clause, Homestead, implied contract, Intangible tax, Intestate, Quiet title,
Quitclaim deed, redlining, renunciation, rescind, revocation, riparian rights, secondary market, seizen clause, severalty, site plan, situs, special assessment, specific performance, statute of limitations, steering,
Principle of substitution, tax lien, tenancy, tenancy at will, tenancy at common, tenendum clause, time is of the essence, title insurance, unilateral contract, variance, vendor’s lien, DVA, warranty deed, zoning.
AS well as Hazard Materials Test, Soil Settling, Flooding, Roof defects, Home Inspection, Home Warranty, Mold evidence.
SOME CHARGES THAT MAY APPLY ARE:
Termite inspection, survey, water test, radon test, lead test,
Property condition report, flood zone report, county comprehensive plan disclosure, VA, FHA, Underwriting, transfer fee, assumption fee, transaction fee, title insurance, PMI, origination fee, mortgage title fee, fire insurance, home warranty, intangible tax, doc stamps, septic report, energy audit, doc prep, Discount points, buy-down, credit report, Hazard Materials Test, appraisal fee, alta endorsement, home owners title insurance, closing fee, title search.
ALSO NOTE: In Florida anyone who performs real estate services for others for compensation must be licensed. That includes buying, selling, renting or advertising. Even one dollar paid as a referral fee or anything that could be considered a referral fee to anyone unlicensed is illegal and carries serious legal penalties.
Your agent should know the ins & outs !
TAKE “COUNTER OFFER” FOR EXAMPLE:
Do you know if Both buyer and seller are bound by the price and terms when a seller signs to accept a written offer, but is that offer void if the seller “counters” with any change at all? IS the buyer then free to reject the “counter offer” and then to request a return of his escrow money?
By Steve Myers
All articles are for educational purposes only and are not meant as tax or legal advice! See a CPA for tax advice or an attorney for legal advice, or any other appropriate professional for the sector!
