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Real Estate Law Terms Every Potential Homebuyer Should Know

real estate law termsThe real estate process can be difficult if you’re not familiar with real estate law terms and other housing terminology. This, in addition to wanting a greater sense of ease, is often why many potential homebuyers hire a real estate attorney while they’re on the hunt for their dream home.

However, while it is commendable to use the services of a real estate lawyer it may do you well to additionally familiarize yourself with real estate law terms as a means of feeling knowledgeable about your home-buying process.

In California, it takes approximately 40 days on average to close on a home, but learning these real estate law terms will take less than five minutes.

  • Adverse Possession — the possession of property of which another owner has title of possession. For instance, if a person erects a fence on another owner’s land and the owner of that land does not object over a series of years the person who erected the fence has the right to take the owner of the land to court as a means of arguing for the land on which they erected the fence, claiming that land to be theirs.
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  • Basis — a property owner’s financial interest regarding that property for their tax purposes.
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  • Closing — the end of a mortgage or sale of a real estate property passed down via a deed.
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  • Escrow — a series of time in which the delivery of the closing deed has been given to a third party to the grantee.
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  • Homeowner’s Association — an organization of people who own homes in a particular area as a means of improving the quality and maintaining the quality of that community.
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  • Market Analysis — an estimated report of the resale value of a given property. A real estate agent typically uses this to compare properties in a given area.
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  • Property Development — also known as real estate development. The design and building of a given property or series of properties.
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  • Personal Property Law — the law that determined one’s personal or movable possessions in the eyes of the law system.
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  • Zoning Restriction — the division of residential, industrial, and commercial districts by state or local government.

Understanding real estate law terms can be a great way to feel in-the-know when going through the real estate process speaking to your real estate attorney. Now that you know this basic real estate terminology, you can feel more comfortable during the search for your dream home!

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