Glossary of terms

Found 5 blog entries about Glossary of terms.

Just about everything we do these days exposes us to legal risk. So, it’s no surprise that a real estate transaction has legal risk, too. But, it’s not well known that the risk is disproportionate — it’s much riskier for the seller than for any other party. In a recent study, it was found that the seller was the defendant in 88% of cases! 

Not to worry. We have a proactive plan to minimize your risk. Since most lawsuits in residential real estate allege lack of adequate disclosure, here is our three-step plan:

Understand the legal standards for disclosure. Sellers in Colorado are required to disclose “latent defects” about which they have “actual knowledge”. Latent defects are defects that are not visible or apparent on casual inspection. A basement

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THE QUICK FACTS ON EARNEST MONEY

When you execute a contract to buy a home, you will offer some earnest money to the seller. The contract specifies when you need to provide the earnest money to the seller or seller’s agent and this is normally within a few days of contract execution. This check will be cashed within 24 to 48 hours of being provided, so make sure the money is in your account when you write the check. At closing, the earnest money is applied towards any down payment and/or closing costs that you might have. If you are doing a “no money down/no closing cost” transaction (rare these days), the earnest money comes back to you at closing. 

REASONS YOU MAY LOSE YOUR EARNEST MONEY

Instead of a closing, a contract can end with either a

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It’s time to arrange your home owner’s insurance. 

If you are buying a condo or townhouse or any property where the hazard insurance on the structure is being paid by a home owner’s association, you’ll still need to obtain what is commonly called “condo or Renters” insurance — it covers certain interior real estate items, your personal property and liability protection.

You’ll want to arrange the home owner’s insurance before the end of the Property Insurance Objection Deadline date found in Section 2 of your purchase contract. Some insurance companies are charging premiums based on the claims history of the property in addition to your own claims history as an insured. If the insurance company you want to use is doing so, the cost to insure the

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A Home Warranty can be purchased which acts as an Insurance Policy which covers the kitchen appliances along with plumbing, mechanical and electrical components of the house.  If any of these were to breakdown during the period of the Home Warranty coverage, you can call the company to send one of their preferred vendors to come and repair/replace (note there is usually a call out fee).   It is very important for you to read these warranties to see what is covered, what is excluded and how warranty work is performed. In addition to excluding any coverage for structural defects, these warranties typically do not cover the roof either. 

If you are buying a resale home and you are interested in obtaining a non-structural warranty, you may contact the

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As part of the Colorado Contract to Buy and Sell, one of the contingencies is the option to get an ILC of a ALTA Survey.  Many properties are on a Lot and Block and the majority of potential home owners pass on this contingency.  However you do have the right to get one should you choose to make sure the home doesn't have any encroachments, easements etc that could affect the use of the property.  Potential issues could be

* Fencing now installed on the correct boundaries

* A driveway encroaching on the wrong property

If an issue is discovered, the Title company will exclude it from the policy.  But is at the point that you have the option to discuss with the Seller to get the issue resolved. 

Improvement Location Certificate (ILC)

This is

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