How to Read Real Estate Records

Keep a real estate glossary handy when reviewing real estate records.
Reading real estate records without a knowledge of the terminology is challenging. Records are prepared differently and the terms used are not all the same in every state, which can be confusing. You can learn to read real estate records with the help of a glossary, much like a person visiting a foreign country refers to a translation book.


Instructions

• Get a real estate glossary book. You can find one at a book store or download the Real Estate Marketplace Glossary by the Federal Trade Commission on the Internet. The glossary gives 17 pages of definitions for terms found in real estate records.

• View a legal website such as the Washington State Bar Association and review its real estate publication concerning documents used in real estate transactions. It gives a full description of real estate documents, such as listing agreements, purchase and sale agreements, disclosure documents, security documents and financial records.

• Visit the Register of Deeds Office in your county and review the deeds, mortgages and liens. Index books consist of recordings made in a year. The index book gives the book number and page number of a particular document. You can make copies of these documents and examine them at your leisure.

• Take a trip to the library and compare records you have to a book on real estate documents. Follow the format of the documents and get a feel for the structure of the record. You will find that many records have the same terminology and same sections that cover pertinent legal declarations.

• Take the real estate record to an attorney for clarification. If you are in the process of buying a property or obtaining a mortgage, you have the right to an attorney review.

• Obtain several rental agreements, which are confusing because not all landlords use the same documents. Check the rental agreement terminology against a glossary. Understand the clauses that govern the security deposit, termination of lease, eviction, late fees and property damage.

• Educate yourself on a standard format for most real estate records. You can find blank documents through legal supply stores, bookstores and in some cases, real estate agencies and county offices. Documents vary by state. Learning a standard format will enable you to read most real estate records with ease.

Tips & Warnings

• Refer to a real estate glossary.
• Do not sign a blank document.
• Do not sign a document you do not understand.

source : Vickie Van Antwerp

How to Notarize a Real Estate Document

How to Notarize a Real Estate Document

Because real estate documents are legally binding, you must have some paperwork, such as documents pertaining to deeds and mortgage or sales agreements, notarized by a notary public. Often offered to simply as a notary, a notary public has the legal authorization to witness oaths and agreements between individuals, organizations and businesses. Having your real estate document notarized confirms the identities of everyone involved and ensures all parties are entering into the agreement of their own free will.

Instructions

• Complete the document with names, addresses, monetary figures and other information as necessary. Do not sign or date the document.

• Find a notary public at your county courthouse, local government offices, city hall, public library or document and package handling store.

• Go to the notary with everyone who needs to sign the document. Pay the notary fee, which is usually less than $10.

• Sign the document.The notary will witness the signatures of each party and place his seal on the document to prove he served as a witness.

source : Lauren Treadwell

Documents to Set Up Owner Financing

Real estate professionals assist with owner financed real estate transactions.
Owner financing occurs when the owner of a property finances a real estate transaction. Owner financing is also referred to as owner or seller carryback and is a non-traditional form of real estate funding. All legal matters in the transaction are negotiated between the buyer and seller. Each party must review and sign several documents to ensure the transaction is conducted legally.

Purchase Contract
One of the most important documents used in an owner financed real estate transaction is the purchase agreement or contract. This contract specifies that the transaction is a seller-financed deal and lists the consideration involved in the transaction. The contract lists the property address and if the property is being sold in as-is condition. The contract also lists the purchase price of the property, the down payment and the amount financed. The purchase contract also details who is responsible for paying the insurance and property taxes on the home as well as to whom the monthly mortgage payments will be paid.

Owner Carryback Disclosure
An owner financing disclosure document details information about the mortgage note. This document defines the mortgage amount, number of installments and installment amounts plus interest. The disclosure also specifies that the note is secured by the property. Title conditions and escrow information are also included in the owner financing disclosure statement.

Transfer Disclosure
A real estate transfer document discloses the condition of the property to be sold and the physical characteristics of the property. In this document, the seller discloses what is included in the property at the time of sale such as appliances, central heating and air, water softener, garage door openers, hot tubs, alarm systems and many other items. The disclosure identifies if these items are in working order or if they need repair. Further, the disclosure describes the age of the home, type of wiring and roof type. The seller discloses items with significant defects, if known.

Funding Disclosure
A funding disclosure is a document that outlines funding and closing information. It details when down payment funds are due after closing and the responsibilities of the closing agents once the real estate transaction has been completed.


source : Sherrie Scott

Commercial Real Estate Documents Checklist

Commercial Real Estate Documents Checklist
Purchasing commercial real estate can be tricky, but having a checklist beforehand can be really helpful, so that you don’t forget anything. There are some documents that are not necessary, but are still beneficial to the buyer and the seller. Carry a checklist with you beforehand to ensure that everything is put together properly and is in order.

 Due Diligence Checklist For Commercial Property Closing Checklist for a Real Estate Agent

Precontract
Precontracts are a smart choice for both residential and commercial real estate. A precontract is simply a description of a contractual agreement that is not yet in place. In a way, a precontract is like a plan of action, as well as a promise for an agreement before the agreement has actually been implemented. A precontract ensures that the buyer (or investor) has everything on track and that they will see a return on their investment. The precontract outlines the promise of the agreement before the agreement has actually taken place. This is especially beneficial to someone who is putting down earnest money or who is promising verbally to go through with a purchase, but has not actually filed out the paperwork. For example, a seller may have three interested buyers, but may decide on one individual because she is paying a higher price than the other two. The precontract is put into place to say that the buyer is promising to make the purchase within a certain amount of time for a certain amount of money. That way, the seller has some assurance that the deal will go through.

Prepared Affidavit and Memorandum Agreement
The Affidavit and Memorandum Agreement is usually a simple statement that the involved parties have entered a written agreement over the property. It can be a blank form that is filled in by hand. The form is an extra step, but it is helpful in case the actual agreement or document is lost. It can also be used to outline all of the paperwork that was filled out and agreed upon by all parties. The Affidavit and Memorandum Agreement usually lists the state and county that the agreement will take place in and discusses the commercial purchase and sale of the property andor related business or supplies. The agreement is a short agreement and is signed and dated by all parties. An affidavit should be signed by a notary, which means all involved parties and the witness should meet at the notary’s office, bringing their identification cards. There may be a small fee for getting the document notarized.

Prepared Earnest Money Escrow Agreement
If earnest money is being put down, an agreement should be drawn up beforehand. Earnest money is an agreed-upon amount of money that the buyer will give to the seller (usually put into an escrow account until the sale is completed). If the agreement is not concluded satisfactorily, the seller usually has the right to keep the earnest money. The best way to describe earnest money is that it is a good faith deposit. An Earnest Money Escrow Agreement outlines how much earnest money is being put down, why and how the money is to be used.

Commercial Real EstateBusiness Agreement
Finally, put the entire agreement in writing in a formal purchase agreement. This is the final agreement (on paper) that the buyer and seller enter into and which will seal the deal and make the purchase final. After this paperwork has been completed and payment has been made in full, the buyer can take over the business property and the seller has completed the sale. If making a commercial real estate purchase which includes some type of business or materials, make sure that the purchase agreement lists all assets that are part of the sale. That way, you will not find yourself in the position of expecting to buy, for example, a complete motorcycle repair shop with all current business contacts, equipment and stock and end up owning only an empty building. The business agreement will vary according to what the buyer and seller agree on, but should be looked over by a real estate lawyer or experienced broker.

source: Beth Lytle

A Legal Description of Property Documents

Real property, as distinguished from personal property, can be loosely defined as land. Real property encompasses the surface and everything attached (that is, buildings), everything below the surface (such as minerals) and the airspace above the surface up to a certain altitude. Maintaining accurate property records and conveyances requires a uniform methodology for physically describing real property across different jurisdictions.


Metes and Bounds
Documents describing, transferring or conveying real property often contain a legal description of the land. This description is often referred to as a metes and bounds description, or a bounded by description.

Uses
A legal description of real property appears in instruments such as sale contracts, deeds and other agreements relating to the property. A legal description in a property document is usually included as a separate schedule, appendix or attachment.

Boundaries
A legal description of real property uses physical features and geographical references to identify and describe the property's dimensions. The legal description will typically begin in one corner of a lot and identify the exact location of that corner. The description will then trace out and identify the length, path and corner formed by each boundary line, eventually returning to the first corner.

Importance
Any variations or inaccuracies in the legal descriptions in property documents could affect the validity of the title transfer between parties. The legal description is also helpful in identifying property boundaries when making alterations or improvements, so a proper description is essential in preventing or deciding boundary disputes between neighboring property owners.

Lot and Block System
The lot and block system is one of the simplest methods of legally describing property. Typically, this system begins with a subdivision plat or map. That plat or map is divided into smaller blocks, with individual lots demarcated within the blocks. Real property will often be referred to by its Section, Block and Lot numbers. This system is commonly used by municipalities and their building departments and tax assessors.

source: Mike Caruso