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Real estate transactions are governed by federal statutes. Real estate law includes a wide variety of legal issues relating to acquiring, financing, developing, managing, constructing, leasing and selling commercial and residential real property of all kinds, including:

- Real estate transactions relating to consultation and negotiation of mortgages, mortgage re-financing, reverse mortgages, representation, litigation, tax-deferred exchanges, commercial purchase and sale agreements, residential purchase and sale agreements, residential and commercial leases.

- Real estate disputes, adverse possession, eminent domain, condemnation, property taxes, prescriptive easements, views, trees, branches, party walls, title and boundaries, fences, as well as nuisance, trespass and encroachment, as well as sale disputes

- Real estate broker issues, including claims against and defense of real estate brokers and agents including breach of fiduciary duty, disclosure obligations, negligence, fraud/misrepresentation.

- Construction defects and mechanic's liens, including disputes that owners, builders and contractors can have regarding construction disputes, construction accident claims and construction defects claims.

- Land use and zoning matters, including representation of property owners before governmental entities relating to land use applications, permits variances, zoning exceptions, design review approvals, and special use permits.

assumption

The transfer of the seller’s existing mortgage to the buyer. See assumable mortgage.

assumption clause

A provision in an assumable mortgage that allows a buyer to assume responsibility for the mortgage from the seller. The loan does not need to be paid in full by the original borrower upon sale or transfer of the property.

attorney-in-fact

One who holds a power of attorney from another to execute documents on behalf of the grantor of the power.

balance sheet

A financial statement that shows assets, liabilities, and net worth as of a specific date.

bankrupt

A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

bankruptcy

A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.

beneficiary

The person designated to receive the income from a trust, estate, or a deed of trust.

bill of sale

A written document that transfers title to personal property.

binder

A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

blanket mortgage

The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.

bond

An interest-bearing certificate of debt with a maturity date. An obligation of a government or business corporation. A real estate bond is a written obligation usually secured by a mortgage or a deed of trust.

breach

A violation of any legal obligation.

broker

A person who, for a commission or a fee, brings parties together and assists in negotiating contracts between them. See mortgage broker.

budget

A detailed plan of income and expenses expected over a certain period of time. A budget can provide guidelines for managing future investments and expenses.

capital expenditure

The cost of an improvement made to extend the useful life of a property or to add to its value.

capital improvement

Any structure or component erected as a permanent improvement to real property that adds to its value and useful life.

closing

A meeting at which a sale of a property is finalized by the buyer signing the mortgage documents and paying closing costs. Also called "settlement."

closing costs

Expenses (over and above the price of the property) incurred by buyers and sellers in transferring ownership of a property. Closing costs normally include an origination fee, an attorney's fee, taxes, an amount placed in escrow, and charges for obtaining title insurance and a survey. Closing costs percentage will vary according to the area of the country; lenders or realtors® often provide estimates of closing costs to prospective homebuyers.

coinsurance

A sharing of insurance risk between the insurer and the insured. Coinsurance depends on the relationship between the amount of the policy and a specified percentage of the actual value of the property insured at the time of the loss.

collateral

An asset (such as a car or a home) that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.

co-maker

A person who signs a promissory note along with the borrower. A co-maker's signature guarantees that the loan will be repaid, because the borrower and the co-maker are equally responsible for the repayment. See endorser.

commission

The fee charged by a broker or agent for negotiating a real estate or loan transaction. A commission is generally a percentage of the price of the property or loan.

construction loan

A short-term, interim loan for financing the cost of construction. The lender makes payments to the builder at periodic intervals as the work progresses.

consumer reporting agency

An organization that prepares reports that are used by lenders to determine a potential borrower's credit history. The agency obtains data for these reports from a credit repository as well as from other sources.

contract

An oral or written agreement to do or not to do a certain thing.

conventional mortgage

A mortgage that is not insured or guaranteed by the federal government. Contrast with government mortgage.

convertibility clause

A provision in some adjustable-rate mortgages (ARMs) that allows the borrower to change the ARM to a fixed-rate mortgage at specified timeframes after loan origination.

Should I hire a Real Estate Attorney?

There are a lot of reasons to hire a real estate attorney for your real estate needs. A qualified real estate attorney can protect you from costly mistakes, errors in the documents, errors in the figures and other problems that could lead to litigation or other expensive legal action.

Real estate attorneys also represent and assist business entities in a variety of commercial real estate issues including, acquisitions and sales, real estate construction and development, real estate investment opportunities…

Some definitions about real estate.

acceptance

An offeree’s consent to enter into a contract and be bound by the terms of the offer.

adjustable-rate mortgage (ARM)

A mortgage that permits the lender to adjust its interest rate periodically on the basis of changes in a specified index.

adjusted basis

The original cost of a property plus the value of any capital expenditures for improvements to the property minus any depreciation taken.

adjustment date

The date on which the interest rate changes for an adjustable-rate mortgage (ARM).

adjustment period

The period that elapses between the adjustment dates for an adjustable-rate mortgage (ARM).

amenity

A feature of real property that enhances its attractiveness and increases the occupant’s or user’s satisfaction although the feature is not essential to the property’s use. Natural amenities include a pleasant or desirable location near water, scenic views of the surrounding area, etc. Human-made amenities include swimming pools, tennis courts, community buildings, and other recreational facilities.

amortization

The gradual repayment of a mortgage loan by installments.

amortization term

The amount of time required to amortize the mortgage loan. The amortization term is expressed as a number of months. For example, for a 30-year fixed-rate mortgage, the amortization term is 360 months.

amortize

To repay a mortgage with regular payments that cover both principal and interest.

annual mortgagor statement

A report sent to the mortgagor each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.

annuity

An amount paid yearly or at other regular intervals, often on a guaranteed dollar basis.

application

A form used to apply for a mortgage loan and to record pertinent information concerning a prospective mortgagor and the proposed security.

appraisal

A written analysis of the estimated value of a property prepared by a qualified appraiser. Contrast with home inspection.

appreciation

An increase in the value of a property due to changes in market conditions or other causes. The opposite of depreciation.

asset

Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others (including bank accounts, stocks, mutual funds, and so on).

assumable mortgage

A mortgage that can be taken over ("assumed") by the buyer when a home is sold.