When you’re buying or selling property, either as an individual or as a property owner, you will need to learn the specific language that is used within real estate contracts. If you fail to understand this language and do not hire an attorney to assist you, you run the risk of making mistakes during the process.
Therefore, it is important that you invest time into understanding the legal jargon that you will likely encounter in real estate contracts. The following is an overview of some of the most important real estate legal jargon that you should know before buying or selling property.
Seller assist
If “seller assist” is mentioned in a contract, this means that the seller is required to pay for part or all of the closing costs. If you are buying a property, you must include this detail in the contract if you want the seller to pay for part of the closing costs.
Seller concession
If a seller is struggling to sell or wants a particular buyer to seal the deal, they may offer a seller concession, which is a way to incentivize buyers to purchase the property.
Rent-back
A rent-back, sometimes known as a lease-back, is an arrangement in which the buyer allows the seller to stay in the property for a period of time after closing. The terms can be negotiated ahead of time, which will likely include a deposit and a daily rental rate.
Proof of funds
When a buyer makes an offer on a property, they will be required to submit proof of funds to the seller to show the legitimacy of their offer. Proof of funds may count as official bank statements, certified financial statements, or an open equity line of credit.
If you are buying or selling a property as an individual or a small business owner, make sure that you take action to understand the intricacies of real estate law so that you are able to enjoy a smooth and efficient process.