Purchasing a home is a major investment. Knowledge of the various legal terms used along with the legal issues pertaining to home purchase is important. Here are some of the terms you should know before going through with a home purchase.
Joint Tenancy
If you are purchasing the home with someone else, you will likely enter into a joint tenancy. In such circumstances, you and the others are considered the owner of the home or property that you have purchased. If one of the people you enter into joint tenancy dies, that person's rights to the property are passed on to his or her survivors.
Land Tax
The tax that you are required to pay on the property you own in known as land tax. The amount of tax you are charged depends upon the value of the property. Land tax is not applicable to the property that is your principal place of residence.
Liabilities and Liens
There should be no liens or liabilities on the home you are planning to purchase and this can be determined by looking at the title deed of the home you are planning to purchase. The outstanding debt that the previous owner may have had in relation to the home is termed as a liability. If there are claims, that another person or business may have on the property, they are called as liens. 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 judgments or unpaid taxes as well as a bank that lent money to the previous homeowner.
Appraised Value
When you have decided on the home you are interested to purchase, you will need to have an appraiser visit the home in order to appraise its value. The appraised value is generally the amount that the lender is willing to loan toward the purchase of the home.
Inspection and appraisal are two different things altogether. 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. You should be aware of the term caveat emptor, which means "let the buyer beware." And which is associated with inspection. According to caveat emptor, it is your duty to ensure that you are satisfied with the home prior to purchasing it.
Joint Tenancy
If you are purchasing the home with someone else, you will likely enter into a joint tenancy. In such circumstances, you and the others are considered the owner of the home or property that you have purchased. If one of the people you enter into joint tenancy dies, that person's rights to the property are passed on to his or her survivors.
Land Tax
The tax that you are required to pay on the property you own in known as land tax. The amount of tax you are charged depends upon the value of the property. Land tax is not applicable to the property that is your principal place of residence.
Liabilities and Liens
There should be no liens or liabilities on the home you are planning to purchase and this can be determined by looking at the title deed of the home you are planning to purchase. The outstanding debt that the previous owner may have had in relation to the home is termed as a liability. If there are claims, that another person or business may have on the property, they are called as liens. 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 judgments or unpaid taxes as well as a bank that lent money to the previous homeowner.
Appraised Value
When you have decided on the home you are interested to purchase, you will need to have an appraiser visit the home in order to appraise its value. The appraised value is generally the amount that the lender is willing to loan toward the purchase of the home.
Inspection and appraisal are two different things altogether. 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. You should be aware of the term caveat emptor, which means "let the buyer beware." And which is associated with inspection. According to caveat emptor, it is your duty to ensure that you are satisfied with the home prior to purchasing it.
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.
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