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Common Real EstateTerms for Miami Buyers
Buying a Miami home can feel like navigating through a maze
sometimes, but understanding these common buyer's real estate terms can make the
journey a bit smoother.
The below Buyer's Glossary isn't exhaustive but it covers commonkey real estate terms you'll
encounter as a buyer along the way. From making an offer on a property to closing
the deal, each step is important in ensuring you find the perfect place to call
home.
If the term you're looking for isn't in this short list, check out my
full real estate glossary of terms.
Let's embark on this journey together, armed with knowledge
and enthusiasm. Your path to Miami homeownership awaits—let's make it a joyful one!
Buyer's Glossary
1.
Addenda and Riders: Additional documents attached to the
purchase agreement that modify or supplement
its’ terms. Addenda and riders address specific issues or contingencies not
covered in the main contract.
2.
Appraisal: In cases where financing is involved, lenders
need an appraisal to evaluate the property's market value, ensuring it aligns
with the agreed-upon purchase price.
3.
As-Is Contract/Agreement: An agreement where the property
is sold in its current condition, with no repairs or improvements required by
the seller. The buyer accepts the property "as is" and assumes
responsibility for any issues.
4.
Association Disclosure: If the property is part of a homeowner’s
association (HOA) or condominium association, the seller provides an
association disclosure outlining fees, rules, and regulations that affect the
property.
5. Calendar Days: Calendar days are used to calculate time periods. Any time periods mentioned or dates specified in a Contract that end or fall on a Saturday, Sunday, national legal public holiday, or a day observed as a national legal public holiday because it fell on a Saturday or Sunday, is extended to the next calendar day that is not a Saturday, Sunday, national legal public holiday, or an observed national legal public holiday.
6.
Closing: The final step in the transaction is where all
necessary documents are signed, funds are transferred, and ownership of the
property is officially transferred to the buyer.
7.
Closing Agent: Also known as the escrow agent or closing
officer, this person or company coordinates the closing process, ensuring all
documents are signed and funds are properly distributed.
8.
Closing Costs: Various fees and expenses associated with
finalizing the property purchase, including loan origination fees, title
insurance, property taxes, and attorney fees, if applicable.
9.
Closing Date: The day when all transactions must be completed,
and ownership of the property officially changes hands.
10.
Closing Documents: The legal documents required to
complete the real estate transaction, including the purchase agreement, deed,
and mortgage documents.
11.
Closing Statement: Your financial snapshot of the big
day! It breaks down all the details of your transaction from the purchase price
to closing costs. A closing statement, is also known as a settlement statement or
HUD-1.
12.
Contingencies: Specific conditions included in the
purchase agreement that must be met for the sale to proceed. Common
contingencies include financing, inspection, and appraisal contingencies, which
allow the buyer to back out or renegotiate if certain conditions are not
satisfied.
13.
Counteroffer: If the seller is not fully satisfied with
the initial offer, they may respond with a counteroffer, suggesting
modifications such as a different price or closing date.
14.
Earnest Deposit: A good faith deposit made by the buyer
when an offer is submitted, demonstrating their seriousness about the purchase.
This deposit is held in escrow and typically applied towards closing costs or
the down payment.
15.
Escrow Agent: A neutral third party who holds funds and
documents during the transaction. The escrow agent ensures that both parties
fulfill their obligations before the sale is finalized.
16. Flood Insurance: Necessary for properties in flood-prone
areas, this specialized insurance covers damage caused by flooding, which is
not typically included in standard homeowners insurance policies.
17.
Homeowners Insurance: Provides coverage for damages to
the home and personal property due to events like fire, theft, or natural
disasters, and includes liability coverage for accidents on the property.
18.
Inspection: A crucial step where a professional
inspector examines the property for any defects or issues, from structural
problems to minor repairs.
19.
Inspection Period: The designated timeframe during which
the buyer must complete the property inspection and report any concerns. This
period is usually specified in the purchase agreement and can range from 1 to
10 days.
20.
Listing: The starting point where a property is put up
for sale, whether it's a house, apartment, or any other type of real estate.
21.
MLS (Multiple Listing Service): A comprehensive database
owned by the National Association of Realtors where real estate agents list
properties for sale, facilitating the search for buyers and the marketing for
sellers.
22.
Offer: When a buyer finds a suitable property, they make
an offer, specifying the price they are willing to pay and any conditions that
must be met before the sale.
23.
Seller’s Property Disclosure: A document provided by the
seller detailing any known issues or defects with the property. This disclosure
helps buyers make informed decisions and can influence the negotiation process.
24.
Survey: Consider a survey as the detailed blueprint of
your property. It meticulously maps out your land's boundaries, leaving no room
for confusion or disagreement with neighbors. It's the essential document that
ensures your property lines are crystal clear and undisputed.
25.
Time of Acceptance: The timeframe within which the
seller must respond to the buyer's offer. This period can vary but typically
ranges from 24 to 72 hours.
26.
Title Insurance: Protects both the buyer and lender from
potential legal disputes or claims related to the property's title, such as
liens or unpaid taxes.
27.
Warranty Deed: It is a legal document used in real
estate transactions that guarantees the seller has clear ownership of the
property and can legally transfer it to the buyer . A warranty deed provides
the buyer with greater protection by guaranteeing that the seller holds clear
title to the property and will defend against any future claims to the
property's ownership.
28.
Walkthrough: A
walkthrough is when the buyer inspects the property before finalizing the deal at
closing. It occurs on the day of or just before completing the transaction,
giving the buyer the opportunity to ensure everything looks good. It's also a
chance to confirm the property is in the same condition as when buyer was shown
the property.