A – Alienation Clause: A clause restricting the sale of a property without paying off the debt.
B – Bundle of Rights: Ownership of all legal rights to the land including possession, control, disposition & enjoyment. All of these items are protected upon transference of the deed(?).
C – Contingent Offer: A provision in a contract that requires completion or certain event(s) take place before the contract is binding. If that event does not take place they buyer is able to walk away. Often a contract will be contingent upon the closing of another transaction so a buyer doesn’t get stuck with paying two mortgages.
D – Deed: A written document that conveys title to an interest in a property, when executed and delivered. The great document to rule them all, you could say.
E – Encroachments: This refers to any structure (wall or fence for example) that invades a portion of the property belonging to another.
F – Fixture: An article of personal property that has become permanent property due to being permanently fixed to the realty itself. Some fixtures can be easily confused during the home buying process, make sure you know what will stay or go. Basketball hoops, swing sets, and window treatments are often confused for permanent fixtures leaving the buyer disappointed at the walk through. It’s always okay to ask but never assume that these wish list items will stay without some due diligence.
G – Gross income: The income amount produced by a property plus miscellaneous income less any collections costs or vacancy. This term is most useful to investors looking to rent out their property.
H – Highest & Best: Often if there are multiple offers coming in on a property the owners may ask for all interested parties to submit their highest and best offer for review. This process creates a sense of urgency among buyers and also allows the seller to shrink down the hectic back and forth between multiple time sensitive offers.
I – Interim Financing: This form of financing is a short-term loan typically made during the construction phase of building. This is also often referred to as a construction loan.