When thinking about real estate investments, one must consider what regulations govern the sale or purchase. Federal and state laws apply when a homeowner wishes to rent out, sell or demolish to redevelop a property. Navigating your way in a legal document with provisions in multiple laws can prove challenging for an amateur lawyer or a citizen whose legal interest starts and ends with acquiring a home or renting one. What then are some of the terminologies one ought to be familiar with in real estate?
Cooperative housing
Cooperative housing is a term commonly used in shared space types of apartments. The cooperative housing term elaborates the rights of a property owner within a housing project that houses multiple other residents and whose common areas are sharable with others. An association owns a group of houses and the common areas where residents use for recreation activities. It allows an individual to reside in a share of the property as if they owned the property themselves.
Deed
An executed deed is the document that gives the full right for a new owner to occupy and use a real estate property as theirs. It transfers full ownership to the resident. The deed documents describe the real estate unit, the name of the transferring party, and the recipient. A grantor must execute it.
Easements
As the name suggests, Easement gives access to a property by a third party to use it for a specific purpose. Easements apply for adjoining property in the best possible way that assures all parties’ rights. Easements ensure that another party has access to a property, but such property remains with the owner. They ease the use of sewer lines, electrical lines, and shared roads within a property.
Encroachment
Encroachment refers to the act of building over another party’s property, whether in whole or in part. There are numerous cases reported about parties encroaching on other property. Such legal battles cost the encroaching party a lot of money if proven that the act was out of negligence. Typical cases are of fences, buildings, or structures erected on a neighbors property. In some cases, encroachment results due to improper surveying done at the beginning of the subdivision.
There are many more terms to consider. You should seek the services of a real estate lawyer to help you navigate the terminology.