Definitions – Attorney Basics – Buying a Home: Eden, New York

Definitions – Attorney Basics –
Buying a Home
: Eden, New York

Real Estate Broker – A Real Estate Broker or Real Estate Salesperson (often called a Real Estate Agent) is a person who acts as an intermediary between sellers & buyers of Real Property.  Their mission is to complete a transaction between the buyer & seller.

A Real Estate Broker or Real Estate Salesperson typically receives a commission for successfully matching a seller’s real estate with a buyer such that a sale can be made. This commission can be divided up with other participating real estate brokers or agents.

FSBO – FSBO is an acronym for, “For Sale By Owner”.   There are many options open to the FSBO seller. Many companies both online and brick and mortar offer various levels of services and price points. These include:

Do it all yourself and pay no commission. For the solo job, thanks to the internet the creative seller can obtain all kinds of help. Some trusted sources provide step-by-step instructions to set a price, get the house ready for sale, hold an open house, open escrow and even transfer the keys.  You can put up a free website with one of the simple and free website companies. Get a professional looking sign with a mailbox attached to it. Make your own Flyers. List on For Sale By Owner websites. And, when you bring in a buyer who is not working with an agent, you pay no commission. The two parties can obtain contractual assistance from their own lawyers or hire one lawyer to facilitate the entire transaction.

Get a Little Help and Pay a Little Commission. There are several flat fee listing services that for a nominal fee will put your property on the Multiple Listing Service so your property is marketed to all the real estate agents in the area and is listed on the nationwide MLS Realtor.com. In exchange for this valuable market share, the FSBO Seller must agree to pay a commission to the agent that brings a buyer. The end result is that you end up paying about half of what you would have paid with a regular listing. The agent who brings in the buyer will also prepare the vast majority of the paperwork for the sale. Since the agent is representing the buyer, not you, you may want to hire an attorney to review the transaction and to make sure all required Seller disclosures are made.

Flat-fee and hourly home selling. Alternatively, a home seller can either pay a flat fee or hourly fee to a real estate agent. This can be a one time payment, or an ongoing hourly home selling agreement. These allow the FSBO seller to avoid commissions and still receive a-la-carte real estate agent help.

Buyers Broker – A buyer may engage the services of a real estate broker to represent her/him and handle the logistics of finding suitable properties, enabling him/her to become qualified to buy, and the showing of appropriate properties.  Advertisement of the price and property details with a Multiple Listing Service, newspaper or web classified listing, law signs, or poster in the real estate office.  Private showings or general open house for interested buyers or buyers’ real estate agents.  Interested buyers may get pre-approval for a mortgage of a certain amount from a bank, if they cannot afford the full purchase price in the range they are exploring.

Multiple Listing Service – A multiple listing service (MLS, also multiple listing system or multiple listings service) is a suite of services that real estate brokers use to establish contractual offers of compensation (among brokers) and accumulate and disseminate information to enable appraisals. A multiple listing service’s database and software is used by real estate brokers in real estate, representing sellers under a listing contract to widely share information about properties with other brokers who may represent potential buyers or wish to work with a seller’s broker in finding a buyer for the property or asset. The listing data stored in a multiple listing service’s database is the proprietary information of the broker who has obtained a listing agreement with a property’s seller.

Mortgage Loan – A mortgage loan, or simply mortgage, is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination

Real Estate Contract – A real estate contract is a contract between parties for the purchase and sale, exchange, or other conveyance or real estate. The sale of land is governed by the laws and practices of the jurisdiction in which the land is located. Real estate called leasehold estate is actually a rental of real property such as an apartment, and leases (rental contracts) cover such rentals since they typically do not result in recordable deeds.  Freehold (“More permanent”) conveyances of real estate are covered by real estate contracts, including conveying fee estates, simple title, life estates, remainder estates, and freehold easements. Real estate contracts are typically bilateral contracts (i. e., agreed to by two parties) and should have the legal requirements specified by contract law in general and should also be in writing to be enforceable.

 

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