Terminology You Should Know When Selling a House

When selling a home, clear understanding between the seller and the buyer is key towards facilitating smooth negotiations. But what if there are terms used that seem vague? Here are some of the common selling terms that you should learn ad understand if you’re off to selling your house.

  • Acceptance: This means that both parties have agreed to the terms of an offer beginning at the time when seller signs his name to the buyers offer. It creates a contact to which the seller cannot withdraw without facing lawsuits. In case the buyer withdraws, his earnest money is forfeited.
  • Appraisal: In real estate, this term is used to refer to the process of determining the amount of a certain property like a house, a condo, or an estate. The value of a property is usually required by lenders to determine whether they will grant or turn down a borrower.
  • Appreciation: The instance when a property accumulates value over time due to economic factors. This does not apply to increase in value due to improvements.
  • Closing Costs: The costs involved in settling a property sale except its real price.
  • Common Area: Facilities or amenities shared by residents of condominiums, apartments, or cooperative houses. They may include laundry rooms, recreation facilities, courtyards, and parking areas.
  • Counteroffer: In real estate, it is making another offer to void the initial offer made by the other party. For instance, a $1 million offer by the buyer will become void should the seller wanted $1.2 million for his property.
  • Depreciation: Opposite appreciation, it is the instance when a property reduces value over time due to external economic conditions but also includes natural wear and tear, age of property, and damages.
  • Disclosure: Revelation of facts previously unknown such material defects, stigmas, or legal claims affecting a property. Different states may impose differences in disclosure laws on real estate.
  • Earnest money deposit: Abbreviated as EMD. It is partial payment signifying intent or commitment to the purchase of the property. Both parties usually agree to settle remaining amount on closing date.
  • Fixture: Features attached to a house like wall carpets, lightings, or built-in appliances. Depending on the terms of the property sale, these fixtures may or may not become properties of the new home owner.
  • Title: Document, usually a deed or certificate showing a person’s legal ownership of a property.
  • walk-through: Final inspection of the house to search for other problems before change of ownership takes effect.

These are just some of the most common home-selling terminologies that you might encounter when selling your home or when you’re buying your new space. Regardless of which side you’re in, local real estate agents are ready to explain vague terms for you.

The Growth Patterns of Land Should Be Your First Priority

When we start looking for parcels of land, we need to determine the growth patterns in our area. This is very important as you don’t want to become involved with a parcel of land that you can’t resell. You want to be in the areas of high growth trend in order to make a ton of money on your resells, right? Look for the high growth areas so that you can resell the parcel of land quickly. However, you may want to be in the areas of slow growth if you are looking for parcels of land for your personal use and you’re concerned about congestation.

One way or the other, you need to know the growth patterns in your area. If you have lived in a particular area for a number of years, you are probably very much aware of the growth trends for parcels of land in your area.

If you are not familiar with the growth trends, ask experienced real estate agents and appraisers. Plus there are others in your area that are aware of the growth trends such as engineering firms, (survey companies).

Plus you can talk with people who work at title companies or at the county tax assessor’s office. The people who work at these offices are working with new sales constantly, with their closings and recordings, and are aware of the growth patterns. Simply call them or visit their office and ask them. If you happen to get someone on the phone who is not very cooperative, call someone else.

As I have mentioned, I feel that it is important that you know the growth trends in your area and it’s not too hard to determine this.

A couple of years ago, a gent read my materials and decided that he wanted to get involved with parcels of land. Since he lived in a very populated area of California, he decided to go to an area where rural acreage was available. For some reason he decided on Jackson, Miss. and even though he knew nothing about Jackson, he flew to Jackson, rented a motel and a car and started looking for a good deal in land.

He determined the growth patterns and the more desirable areas of Jackson and set out looking for parcels of land. His experiences are quite a story but basically he had a really great land deal, that he made a lot of money on, in only three days in Jackson!

Vacant land can be very intriguing and offers many more opportunities than most people realize.

Commercial Real Estate Soars in Chennai

Chennai real estate market is witnessing an unparalleled growth in the commercial sector. The property value graph is showing a constant increase in commercial property values ​​but it is estimated to cross the threshold very soon.

Chennai's economic set-up and its infrastructure favour both industrial as well as the service sector. Traditional segments like the shipping sector prefer Chennai because of its geographical location. New businesses, like the Back office Processing Operations and Information Processing Centres, too prefer Chennai to other neighbouring cities since Chennai's city's infrastructure favours such activities. In fact the demand for commercial activities surpasses its supply, even after a number of commercial projects are under construction. IT companies are fuelling this demand for commercial space in Chennai.

Leading developers and realty majors have launched their new commercial and residential projects to cater to the rising demand. Most of the new projects are on Chennai's IT Corridor. Chief locations like Nungambakkam, Mount Road, Anna Salai, Cathedral Road and Dr Radhakrishnan Salai are witnessing maximum appreciation in the property rates. These areas are accessible and are hence preferred by the property builders.

The present commercial capital value of Radhakrishnan Salai is 4,500 – 5,000 Rs / sq ft. This is by far the most expensive commercial area in Chennai. A property booker from Chennai informs that other prestigious commercial localities like Anna Salai and Cathedral Road have capital value of 4,200 – 4,500 Rs / sq ft.

Commercial rental values ​​are equally high in these areas and are expected to escalate in the coming years. Rental values ​​for 1,000 sq ft space at Radhakrishnan Salai are about 35,000 -50,000 Rs / sq ft. This is certainly high as compared to other places in Chennai. Chennai's commercial segment is poised to grow further when all the locations along the IT Corridor become operational.

This is good for the city's trade and commerce but will affect the property rates sharply. Property brokers feel that the best deal is to capitalise on this city's present commercial hubs. These areas are sure to swell in the next five year, ensuring good returns as rentals or as capital.

Mortgage Promissory Note, Allonge, And Mortgage Foreclosure Help

A mortgage promissory note is a promise to pay. If you don’t pay, then your home or commercial property could go into foreclosure where the Lender, bank servicer, trustee, or investor can use questionable tactics to get your property. There is a mortgage that goes along with the note, a contract in real estate. The Bank Lender created both the note and mortgage for their benefit. You can use their own promissory note and mortgage contract against them to regain your home or property. Let’s talk about the note first.

The note on the last page should have an allonge or allonges to prove a true sale(s) to a Trust, another bank, or investor each and every time the note with the mortgage is sold, assigned, or transferred. An allonge is an illegal alteration of an incomplete note. An allonge in blank, without the assignee signing it is illegal as per the Uniform Commercial Code, UCC, Federal code of laws that is controlling the world and the lender’s Pooling and Servicing Agreement that controls the Trust that your note and mortgage are supposed to be in.

When the lender assigns, transfers, or sells the note and mortgage, they become securitized and are sold multiple times to investors or into a trust for multiple streams of income for the lender. Within 30 days of each assignment, transfer, or sell, the assignment of true sale must be recorded under States’ statute. The dates of the allonge endorsement(s) and the notarized assignment(s) must match to prove true sales before a foreclosure can legally occur.

In addition to other disclosures required by TILA, 15 U.S.C. §1641(f)(2), Liability of assignees, not later than 30 days after the date on which a mortgage loan, including mortgage and note, is sold or otherwise transferred or assigned to a third party, the creditor that is the new owner or assignee of the debt shall notify the borrower in writing of such transfer, including-

(A) the identity, address, telephone number of the new creditor;

(B) the date of transfer;

(C) how to reach an agent or party having authority to act on behalf of the

new creditor;

(D) the location of the place where transfer of ownership of the debt is

recorded; and

(E) any other relevant information regarding the new creditor.

This requirement of law is quite useful in a case when you have authoritative documentation that there are other holders of the note that are not the same as the party who claims the right in a mortgage foreclosure action.

It can be the catalyst to force the court to make the foreclosure attorney to produce the note titled to them and other evidences of ownership of the loan since it is a violation of Federal and State law not to. True fraud evidence becomes a very useful plank in your quiet title law suit to oppose and stop foreclosure.

In most foreclosure cases, the judge does not know the law governing the real estate mortgage and note under the Uniformed Commercial Code of Federal Laws, UCC, Articles 3, 8, and 9. Otherwise, the judge would know that bank securitization is unlawful and illegal and the homeowner would win against the banks every time. We surveyed 10 judges in the State of Florida in 10 different counties and only one judge knew what bank mortgage securitization actually is and how it affected mortgage foreclosure cases.

The mortgage is created to perfect the note. There are no such words in Black’s Law dictionary as a security instrument. It is a made up terminology by the banking industry to take your money and property. The mortgage is the contract with many legal flaws. Nowhere does it say that the note and mortgage must be paid by the borrower.

Property Scout Training Manual

What exactly is a commercial property scout? Basically, this is a person who is on the look out for ‘promising’ real estate. The process looks like this:

1. You learn the techniques from the Property Scout Training Manual.

2. Then, you search through local ads and observe the real-estate developments in the neighborhood.

3. When you see something that looks like a business opportunity, you contact the investors.

4. They assess whether the real estate meets their criteria.

5. If it does, they make an offer to the owner.

6. If the owner agrees to the offer, the investors buy the property in question.

7. The same real estate is later on sold at a higher price.

8. The property scout gets the share of the profit.

There are several ways a property scout is paid. How you get paid, depends on the timing of the payment. You can get paid immediately after the investor group decides to make an offer and they mail the Letter of intend. If you do so, you get $300, regardless if the property is later bought or not. Or, you can decide to collect your money after the acquisition. In this case, you are going to receive $15.000 within 10 days of transaction. But if you are willing to wait till the property is bought and resold, you will get 3% of the total profit. The later option can prove to be the most profitable as the profits are often very high, but it is also the most risky. Maverick Group lets you decide how much and when you want to get paid based on your personal preferences.

There is no investment on your part (except for the initial sign-up fee that covers the cost of the Property Scout Training Manual). All you need to put in is some time and willingness to learn and observe.

Best Tips on Finding a Good Rental Office

Having your own office space can be instrumental for any successful business. A good office makes you more accessible for a client. Instead of a meet at a random coffee shop, it is better to entertain your clients in a comfortable office. Plus having your own spaces makes you appear more credible.

Finding good rental offices can sometimes be a challenge. In order to get good deals, one should know what to look for. Some rental spaces either have bad locations or are over-priced. Finding good offices for rent is definitely not an easy task. Here are some of the best tips on finding a good office space for rent.

Consider What You Need – Your Space Requirements, Location and Budget.

Consider for what you are going to use your office space for. Do you need a space for the installation of food stalls? Food stalls can be either expensive or cheap; this depends on the stall size and the location. You can also opt for a mobile office. When you consider what you need do not only think about what you need now. Add things that may come out to be your future requirement. Transferring an office is certainly a pain. Avoid it as far as possible. Plus it is also bad with respect to marketing – unless a transfer is made to a better office in a good locality. Clients like to be familiar with your office location. If you transfer frequently you might lose valuable customers.

Investigate the State of the Market

Investigating the state of the market in which you are relocating is advisable. Read some journals from major real estate brokerages that produce good newsletters on market conditions and the submarkets within them. These journals are usually available at no cost.

Hire a Good Real Estate Agent

Hiring a good real estate agent is also recommended. Some people do not hire an agent with an intention of saving money. But a good agent can provide you with valuable assistance. He may help you find a best deal that can save a lot of money. A good agent must be well-informed about the latest happenings in the real estate market and must be able to give you good advice on the properties that you should rent or buy.

Assess the Owner

You might have found the perfect rental property but this is not the end of the journey. The next thing you should do is assessing the owner. You may want to make some alterations or improvements in case you are going to use the office for business purposes. These are the things that need a negotiation. An owner can be so strict that you practically cannot alter any little thing and this may be detrimental for your business. So, observe his take on things and try to assess the owner.

Consider the Price

What are the rental costs? How much it will cost in next few years? An owner may wish to increase the rent by some percentage every year. You might want to negotiate these terms in order to avoid future problems and confusions.

After selecting a building, negotiate the prices you want. You agent should provide you with a clear idea of the price that is reasonable to ask in a particular market. In case you do not get a reasonable concession from the landlord, just walk away and find a space somewhere else.

13 Really Hot Needs for Amenities in Leasing Commercial Property

A property that serves the tenants well will preserve lease occupancy and rental cash flow. In this property market place, the retention of tenants is fundamental to the immediate future. We are at the beginning of a new property cycle and tenants are very much part of the property future and optimisation.

To keep tenants happy, it is necessary to consider all the amenities and services that are provided within the property by the landlord. They should serve the tenant well at all times. Maintenance of the amenities and services will also be important to ongoing levels of comfort that the tenants experience. In simple terms, look after the tenants with great services and amenities in the property. When you do this you look after your cash flow and preserve better levels of building occupancy.

Take the standard office building, and then consider the issues that really impact tenant occupancy. It is the things that the tenant uses every day or walks through that will impact their impressions of the property. In a retail shopping centre, this equation also includes the customer that visits the property. Presentation and convenience of property usage is critical to the services that a property provides.

Whilst every property is different, the following list of essential property amenities and services are a good guideline to consider when providing tenants with the levels of occupancy comfort they would expect. You can also use this as a check list for the property inspection that you undertake as a leasing manager or property manager seeking to optimise lease occupation.

  1. Gardens adjacent to common entrances they must always be well maintained and cleaned. The entrance ways to properties are the obvious first levels of property impression. They must be clean and attractive at all times.
  2. Modern well lit entrance ways to the building are fundamental to the tenant impression process. Good levels of lighting directed within the features of the property entrance way will give both security and prestige to the building.
  3. Directory boards in common areas must always be kept up to date. They should also be well maintained as to tenant detail and tenant location. The directory board is accessed by the visitors to the building and needs to give the best impression.
  4. Common area layout and access is not only important to the entrance to the building but also to the individual common areas on each floor in multiple level properties. The common areas need to give the right impression as tenants move through to their own leased premises. When you think common areas, you must consider lighting, cleaning processes, ease of access, signage, and levels of presentation. Is up to the landlord to maintain these common areas to the highest possible standards.
  5. Common area presentation and lighting must always be of a high standard and well maintained. Common area lighting should be inspected weekly by a trades person to replace tubes and globes efficiently.
  6. Showers in common areas are becoming a critical part of tenant occupancy. Many tenants expect the convenience of house within the premises. This allows their staff to undertake exercise or walk to work. Showers are an improvement on the standard tenant services offered and can easily be incorporated into the building and floor design.
  7. Toilets in common areas will always show the age of the building. Many landlords refurbish the floor but forget about the toilets. It is the toilets that will age date the building and hold back the rental the landlord is trying to achieve. On average, toilets need to be refurbished every 5 to 8 years. This process needs to be staged and incorporated into the building budget of expenditure. A busier building will create a more frequent refurbishment need and process.
  8. Toilet presentation and pedestal numbers per floor are critical when you consider certain types of tenancies. Most particularly call centres will create the problem in to or usage and presentation. These types of tenants operate extended hours of trade and impose pressures on property occupancy.
  9. Tea rooms and kitchens in common areas are essential part of tenant occupancy. They may be in common areas, or they can be incorporated into tenancy design. Importantly there must be available and operate efficiently. If they are in common areas, this becomes a special consideration for the landlord to consider.
  10. Lifts access to common areas and tenancies needs to incorporate good security processes. Fortunately today lift access is usually controlled by security card process. This can be taken down to the level of the individual person accessing the individual area within the building. The better the security controls that the building can provide, the better the services to the tenants.
  11. Tenant connection to building plumbing and communication risers will always be a necessity. The efficient access to these communication areas allows the tenant to establish their own communication systems linking to the street and the outside world. Efficient access to plumbing services and risers allows the tenant to design the tenancy board room and kitchen wet areas that they require.
  12. Air conditioning operational hours and after hours capability needs to extend beyond normal operational hours as required. Many tenants today require air conditioning out of normal operational capability. This will become a tenant expense for the extended hours of operation, and the landlord needs to provide some cost recovery process for this extra air conditioning.
  13. Communications systems availability such as telephones and internet are part of every business. Access to the building risers will be part of the connection to the communications out in the street. The as built drawings for the property will give the tenant the necessary information to connect to the building risers and drop their cables to the main street.

In summary, in offering a great building to the tenants in this market place, you need the essential building services and amenities being well maintained and optimized. When this is done, the tenant enjoys occupancy and can be with you for many years as part of the building cash flow.

Terminating the Co-Ownership of Hawaii Real Property

There are times when co-owners of Hawaii real property are engaged in a dispute and no longer wish to continue co-ownership of such property, or one party is no longer making payments on the mortgage and the paying party wants to remove the non-paying party from title. The question that usually follows is what are the co-owners’ options if they wish to sever such relationship.

In the event that there is no prior written agreement among the co-owners setting forth each owner’s obligations and the procedures for resolving disputes, the co-owners are basically left with two options:

(1) work out some agreement to resolve the dispute or

(2) terminate the co-owner relationship through a court supervised partition action pursuant to Hawaii Revised Statutes Chapter 668 (Hawaii’s Partition of Real Estate Statute).

The co-owners should first try to resolve their differences and come to some compromise. By reaching such a compromise, the co-owners would not need a Hawaii partition action which can be a very costly process. However, if seeking such an agreement proves to be a dead end, then a Hawaii partition action is necessary.

In a Hawaii partition action, one or more of the owners files a lawsuit against the remaining owner(s). The filing party is also required to join as a party every person having or claiming to have any legal or equitable right, title, or interest in the property described in the lawsuit.

Once a Hawaii partition action is filed, the court has the jurisdiction to partition the real property by (1) partition in kind or (2) partition by sale. A “partition in kind” occurs when the court physically divides the property and each owner ends up controlling an individual portion of the property. A “partition by sale” is accomplished by selling the entire property at a public auction and dividing the proceeds among the owners according to their respective interests in the property.

The courts tend to favor a partition in kind first, but if such a division is not feasible, then the court will proceed with a partition by sale. As you can see, terminating a co-ownership relationship of real property is not that simple and can be costly. Therefore, you should seek consultation with a Hawaii attorney experienced in resolving co-ownership disputes of Hawaii real property.

You Need Real Estate Investing to Achieve Financial Security: But Educate Yourself First!

Real estate investment has always been an attractive avenue to make money and achieve financial independence, that would eliminate the need to worry about financial down times – like the kind we’re currently faced with.

Unless you’ve been living on a remote, uninhabited island or planet, you no doubt feel the effects of the recession that has challenged the income earning ability of even the most prosperous persons, groups/organizations as well as nations.

Those who survive and/or thrive in spite of all the uncertainty and adversity, do so by adopting serious strategies to build and consolidate their abilities to make money especially in lucrative fields like real estate investing.

The problem has however often been that most people in society, despite being aware of potential benefits of real estate investing, lack the competence to cost-effectively and profitably venture into this line of business.

Many who dared to go in without getting reliable information and education to guide them, have had their fingers burnt – becoming victims of a few bad eggs who lure unsuspecting enthusiasts into phony property investment deals.

As a Real Estate solutions provider, I’ve seen this happen for quite some time, and my desire to help potential buyers avoid such painful negative experiences makes me ALWAYS focus on FIRST educating them on the proper way or process of investing, into real estate.

I arm them with details of how to confirm the status of the land or building, and relevant documents to possess, whilst securing their investment into the future.

For instance, I get asked certain questions about real estate solutions I offer quite often by different prospective clients. These same questions are posed to others who do what I do, in the industry – including the crooked ones looking to cheat – or even dupe – their clients.

In my case, I have developed the discipline over the years of stating the truth to each client regardless of whether or not it could lead to a loss of sale.

In the short run, this may seem to be self-defeating, however, in the long run, as my experiences have repeatedly proven, it can pay huge dividends in form of powerful name/brand credibility due to your demonstrated integrity.

Here’s one example of answers I give to questions I get commonly asked by intending buyers:

Question: Distance (Isn’t that property too far away from town?)

Answer: Distance does not really matter, when it comes to making money. For instance, most of us leave our various home towns to do businesses in Lagos. Why? Because of the value and monetary benefits we expect to get. Some of us own properties outside Nigeria – so acquiring a few here in Nigeria’s new Lagos, which is currently attracting countless foreign investors, with its huge potentials and wealth, can only make MORE sense!

Notice from the above that my answer was given using points that were obvious and therefore easy to agree with. In other words, they were based on verifiable facts, and devoid of sentiment or hype.

It is this sincere disposition that attracts potential buyers to connect with me, long after I’ve related with them.

Example True Story

Some years ago, the London based director of social responsibility to a top decision maker in the securities exchange commission (SEC) was referred me by an old client.

We had a serious phone conversation here in Nigeria, and she eventually came for inspection and bought 2 acres (12 plots).

As I type these words, those plots remain secure in our estate Dominion Gardens and Parks and have since appreciated greatly in value, as you can imagine.

For that buyer, who today owns those plots, there is no doubt that she has reaped multiple fold returns on that investment made a few short years ago.

Yet, all it took was the ability to make an accurate and well informed DECISION to choose and buy the right kind of property in the right location, from the right source.

The best way to achieve the above mix of favorable circumstances (i.e. the “right” everything you need!) is to connect with a tried, tested and true provider of the solutions you need.

The client who referred this lady to me did so based on the recollection of the fact that I delivered what I promised i.e.landed property at pocket friendly prices, with valid documentation and no complications.

Your future financial independence can be secured via smart investment in real estate.

But you need to start by giving yourself the right kind of information and education to be able to do it right.

Make out time to identify a reliable expert who can coach you to succeed in achieving your chosen objective.

Do that FIRST, before you ever consider dipping your hand into your pocket to pay for any property.

The Difference Between Short-Term And Long-Term Leases

When you lease a property, you have the option of choosing between a long-term and a short- term lease. But in order for you to decide which option is better, it’s important to know the advantages and disadvantages of each one.

Let’s start with the short-term lease. In a nutshell, it is one where the parties are bound by a shorter lease agreement. In this sense, it offers the parties more flexibility and it is thus more suitable for people who have to change locations often. For people who work as store managers, heavy machine operators, or whose jobs require them to relocate periodically, a short-term rental may just be the thing they need.

The flexibility of the short-term lease does not however work for the benefit of the tenant alone. It also affords the landlord flexibility because it allows him to change the terms and conditions of the lease regularly. For instance, the landlord may opt to increase the amount of rental after the lease agreement expires. A short term-lease may also work to relieve the landlord of a problematic tenant.

On the downside, a short-term lease is not very common because more landlords prefer long-term ones. But perhaps the primary reason why landlords choose long-term over short-term ones may be due to the cost involved. Short-term leases prove to be more costly for the landlord because of the advertising expenses and the effort involved when the property is vacated. To compensate then for the cost of advertising the property, a lot of landlords often result to requesting for a higher security deposit.

A long-term lease agreement is one where the parties are bound to each other as landlord and tenant for a longer period. Compared to a short-term, a long-term rental offers each party more stability. Since the landlord is prohibited from increasing the rental until after the end of the agreement, it becomes more economical for the tenant to enter into this type of agreement.

On the part of the landlord, one advantage of entering into a long-term lease is the amount of turnover. There are fewer property vacancies in a long-term one and for the landlord, this means less effort and expense in terms of advertising. A landlord need not increase the security deposit in order to recuperate the expense.

Long-term lease is thus ideal for people with jobs that do not require them to relocate frequently. It is also the kind of lease agreement that’s ideal for people who want to start a family of their own. Because the rent is cheaper, long-term rentals makes saving easier.

But whether you opt for a long-term or a short-term lease, make sure you completely understand the terms of the contract to prevent misunderstanding. Keep a copy of the contract for reference.

BRIAN MALLASCH
COLDWELL BANKER COMMERCIAL