Legal Terms You Should Know When Buying a Home
A major investment is required when purchasing a home. As such, it is important that you become educated about the legalities of a home purchase and that you understand what various terms mean. Here are some of the terms you should know before going through with a home purchase.
Joint Tenancy
You will likely enter into a joint tenancy if you are purchasing the home with someone else. All the people who have jointly purchased the home or property are the joint owners of the same. If any of the joint tenants expires, his or her rights to the property are passed on to his or her survivors.
Land Tax
Land tax is that tax which you pay on the property you own. The land tax value is determined by the value of the property. It should be noted, however, that the land tax does not apply to the property that is your principal place of residence.
Liabilities and Liens
It is important to look at the title of the home you are planning to purchase and ensure that there are no liens or liabilities on the home. The outstanding debt that the previous owner may have had in relation to the home is termed as a liability. Liens, on the other hand, are claims that another person or business may have on the property. Liens are put into place when someone else has the right to the home because they are owed money. Liens can be put into place by a bank that lent money to the previous homeowner as well as judgments or unpaid taxes.
Appraised Value
You will need to have an appraiser visit the home you are interested in and have decided to purchase, in order to appraise its value. The amount that the lender is willing to loan toward the purchase of the home is generally the appraised value.
It is important to note that the appraisal is not the same as an inspection. Get an inspection performed on the home you are interested to purchase. This way, you can make sure you are fully aware of the condition of the home before you make a purchase. Caveat emptor is a term associated with inspection and you should be familiar with this term it means "let the buyer beware." In accordance with caveat emptor, the burden is placed on you to be certain you are satisfied with the home before you make a purchase.
Joint Tenancy
You will likely enter into a joint tenancy if you are purchasing the home with someone else. All the people who have jointly purchased the home or property are the joint owners of the same. If any of the joint tenants expires, his or her rights to the property are passed on to his or her survivors.
Land Tax
Land tax is that tax which you pay on the property you own. The land tax value is determined by the value of the property. It should be noted, however, that the land tax does not apply to the property that is your principal place of residence.
Liabilities and Liens
It is important to look at the title of the home you are planning to purchase and ensure that there are no liens or liabilities on the home. The outstanding debt that the previous owner may have had in relation to the home is termed as a liability. Liens, on the other hand, are claims that another person or business may have on the property. Liens are put into place when someone else has the right to the home because they are owed money. Liens can be put into place by a bank that lent money to the previous homeowner as well as judgments or unpaid taxes.
Appraised Value
You will need to have an appraiser visit the home you are interested in and have decided to purchase, in order to appraise its value. The amount that the lender is willing to loan toward the purchase of the home is generally the appraised value.
It is important to note that the appraisal is not the same as an inspection. Get an inspection performed on the home you are interested to purchase. This way, you can make sure you are fully aware of the condition of the home before you make a purchase. Caveat emptor is a term associated with inspection and you should be familiar with this term it means "let the buyer beware." In accordance with caveat emptor, the burden is placed on you to be certain you are satisfied with the home before you make a purchase.
About the Author:
Jim Olenbush has been active in the Texas real estate industry since 1997. His team of experienced real estate agents specialize in The Courtyard Austin and other luxury neighborhoods around Austin, Texas.