Important Things to Know in Real Estate Law. Real Estate is anything related to the construction and development of land and buildings either commercial or residential.
This seems to be a very simple concept, but there are many legal disciplines included.
Real Estate Law governs who may use their own land or buildings.
Some terms to note in the Real Estate Law:
• The title is the official legal term which describes the owner of the property
• The mortgage is lending money at interest in exchange for the title on the debtor’s property.
After the successful completion of the debt payment, the conveyance of the title becomes void.
• Foreclosure is the term used if the lender takes control of the house or any property used for the mortgage if the debtor fails to pay back the amount
• The official meeting for transferring the ownership of the land or property is termed as closing
• Escrow is the term used for money or property withheld with the third party for safekeeping
• Real Estate Agent is the person licensed for negotiating and conducting real estate transactions
The much-awaited regulation in the realty sector has been announced by the Government of India last year.
Which is the introduction of the RERA Act (Real Estate Regulatory Act). Under the act, the home builders have to deposit about 70% of the amount in the Escrow account.
This will ensure the buyers that the amount is not diverted to some other projects.
Benefits of the RERA Act:
• As mentioned earlier, the builder will divert 70% of the amount taken from the buyers to an Escrow account.
And this will ensure the buyers that their amount is only being used for this project and safe as well without being transferred to other projects.
• With the introduction of this new act, the buyers don’t have to pay for the area over the carpet area.
It is one of the important things to remember.
• All the clearances both from the buyer and the builder should need to be made before selling.
The builder needs to disclose information regarding the apartment.
The builders are allowed to sell the property only after getting proper clearances
RERA is the central law, but as Real Estate is subjected to state.
The state governments have a major role in implementing this act.
However, the various other related practice areas to the Real Estate law include Tax Law, Landlord-Tenant Law, Accidents and Injuries, Estate Planning, Insurance Law.
Important Things to Know inReal Estate Law
These laws legally force the seller of a home to disclose to the potential buyer any serious defects of the property. The laws were created to help protect the buyer from any defects that were not noticed until they closed on the house and become the owners.
Many times it is hard to enforce real estate disclose laws because what is considered serious defects may be open to interpretation.
Because of this, the laws are constantly changing resulting in many states not having effective disclosure laws.
If the state does not have mandatory real estate disclosure laws, they will usually have a voluntary disclosure.
These laws can cover many different subjects so you should consult with a qualified lawyer or real estate agent.
To find out the specifics of what they cover.
In regards to real estate disclosure, there are both state and federal laws regarding these laws. Important Things to Know inReal Estate Law.
Some brokerages have additional regulations for listings they accept.
In the United States, Federal law requires disclosure in regards to using lead paint in homes constructed before 1978.
The disclosure laws generally cover toxic or hazardous materials and the presence of asbestos and radon gas.
Important Things to Know inReal Estate Law
These laws are designed to help protect a potential buyer from buying a home that has known defects or issues.
For example, if the home you are considering buying has suffered from earthquake or flood.
Damage these laws will typically require the seller to provide you with this information.
In addition to real estate disclosure law protection, the buyer should also have a home inspection done by a professional.
This inspection can possibly find other potential issues.
Sometimes, the lender will require that a home inspection be done before they approve the loan.
Important Things to Know inReal Estate Law.
In some states, there are long questionnaires that the property owner has to fill out before they can sell the property.
This questionnaire does ask about any potential issues or defects with the property. Important Things to Know inReal Estate Law.
These questionnaires typically cover everything from issues with the land to the wiring and plumbing inside the home.
Some of the things that the seller has to disclose include, but not limited to, are:
• Water damage caused by a leaking roof
• Presence of wetlands on a part of the property
• Recent deaths on the premises
Generally, these laws only require that the sell reveal issues that they are aware of.
This means that they cannot be held responsible for any problems they were unaware of before putting their home on the market.
But not every state provides this protection.
There have been some cases that the seller can be sued by the buyer after the buyer becomes the homeowner.
This is why you need to have expert advice about real estate disclosure laws in your state.