#realestateterms

Q: What is a "contingency" in a real estate contract?

A: A contingency is a condition that must be met for a real estate contract to become legally binding. Common contingencies include:

1. Financing Contingency: The buyer's ability to secure a loan.

2. Home Inspection Contingency: Allowing the buyer to back out or negotiate repairs based on inspection findings.

3. Appraisal Contingency: Ensuring the property appraises for at least the purchase price.

4. These clauses protect the buyer from unforeseen issues.

Q: What are closing costs?

Answer: Closing costs are the fees and expenses that buyers and sellers pay to complete a real estate transaction. These costs are paid at the time of property registration/closing, in addition to the property's purchase price.

Common closing costs may include:

• Stamp duty & registration charges

• Legal/documentation fees

• Home loan processing charges (if applicable)

• Property valuation fees

• Government taxes and miscellaneous charges

• Maintenance deposit or society charges (for some projects)

Typically, buyers pay most closing costs, while sellers may pay brokerage fees or other agreed-upon charges, depending on the transaction.

Q: What documents will I need when selling my home?

A: Key documents often include the property deed, mortgage statements, property tax records, home repair and maintenance records, utility bills, homeowner’s insurance policy, and any relevant association documents (if applicable). Your real estate agent and closing attorney/escrow officer will guide you through the specific requirements.

Question: What is the common term for the initial sum of money a buyer pays to show serious intent to purchase a property, held in an escrow account?

Answer: Earnest Money Deposit (EMD) An Earnest Money Deposit is the initial amount a buyer pays to demonstrate a genuine intention to purchase a property. The funds are typically held in an escrow account until the transaction closes or is terminated according to the terms of the purchase agreement.

Q: What is "staging" a home?

A: Home staging is the art of preparing a property for sale to make it more appealing to the largest number of potential buyers. This involves decluttering, depersonalizing, rearranging furniture, and sometimes renting furniture to create a welcoming and aspirational atmosphere that allows buyers to envision themselves living in the space.

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Q: What is "Earnest Money" or "Token Money"?

A: This is a small amount of money (usually 1-2% of the property value) paid by the buyer to the seller as a "good faith deposit" to show commitment to the purchase. It's typically held in an escrow account. If the deal falls through due to the buyer's fault, this money might be forfeited.

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