It can be very difficult to understand property contracts. Understanding the most commonly used phrases will allow you to make sense of your paperwork.
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To ensure that you really understand what you are signing when you are faced with property contracts, it’s a good idea not only to hire a professional, but also to educate yourself on the main terms involved. Knowing what common terms mean will give you more confidence when dealing with conveyance and will help you better understand the paperwork you are going to sign.
Contract of Sale
A contract of sale is simply a legal contract. This outlines all of the information needed for the property to change hands from the seller to the buyer. Not only does it list the involved parties, but also any special conditions, the purchase price, and the financing arrangements that the buyer made.
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Certificate of Title
This is just a document that provides information about the current owner and the location of a piece of property. It not only shows who owns the property, but also mortgage information, third party interests, covenants, and easements. When the property is sold, the new owner’s information is added to the Certificate of Title.
Easements allow people to use a portion of another person’s property for a set purpose. There is often a fee exchanged, but this needs to be agreed on ahead of time. Easements can also refer to the legal right to stop an owner from using part of their property in a specific way. Since easements can greatly affect the value of a property or prevent its use, it’s important to consult with a professional such as those at River City Conveyancing when dealing with them.
This is a type of ownership that is made specifically for horizontal or vertical subdivisions where there are common shared areas, such as a car park or a pool. There are individual properties, but they are all connected, such as in an apartment. A conveyancer needs to check the additional documentation included with this type of purchase to make sure that there aren’t any major expenses, such as repainting or reroofing, that need to be considered.
By arming yourself with information about these four property contract phrases, you can ensure that you have more confidence when reading the information given to you when buying a property. While it’s still a good idea to hire a professional who can explain everything to you, knowing what you are looking at will give you confidence and help the whole process move along more quickly and easily.