Staunton Real Estate Settlement: Mortgage Title Terms
Yes, it can get down right hairy trying to understand all the real estate legal lingo! The good news is, you don't need to understand all of it, just what pertains to your real estate transaction.
Here's our handy list of descriptions:
Here's our handy list of descriptions:
Mortgage/Deed of Trust
Documents that show the existence of a debt that is secured by the property. Restrictive Covenants Covenants are private controls on the use of land. They impose limitations on the use and enjoyment of a property. Because of these restrictions, developers can assure prospective buyers of residential property that other lots in the community will be similarly limited in use. Covenant do impose a burden on the ownership of a property, but they also provide the benefit of enhancing land value. While land may be subject to public controls such as zoning regulations, not all land is subject to private restrictive covenants. Easements/Rights of Way Documents whereby an owner of land grants to a non-owner the right to enter or cross the land for specified purposes. For example, utility companies so that they can access the property to install and maintain equipment. Subdivision Plats A plat is the legal description of a specific piece of property, or real property. It is legally required if land is to be subdivided for building homes, parks, and rights of way. For subdivisions, once the plats have been created, they are then recorded at the courthouse. Plats becomes a permanent source for determining the identification and description of a property. Not all properties are part of a subdivision. How Title May Be Held Deeds show the ownership of an estate in property. However, questions can arise as to how the interests of multiple owners relate to each other. An individual may own a property outright. If there is more than one owner, the relationships between the individuals must be recited in the deed to properly establish the estate of the owners. Here are the different ways that individuals can hold title to real property: Tenant in Severalty One person ownership. Tenant in Common Two or more individuals receive title with each person owning an interest in the property. Unless the deed specifies otherwise, each individual has an equal interest in the property. Upon the death of a tenant in common, the deceased’s interest in the property passes to his or her estate. Joint Tenants Two or more individuals receive title with each one receiving an equal ownership interest in the property. Upon the death of any joint tenant, his or her interest passes to the surviving joint tenant(s). Each surviving joint tenant receives an equal share of the deceased joint tenant’s interest. Tenants by the Entireties This form of title can only be held by a couple who is legally married at the time the property is conveyed. Like joint tenancy, this type of ownership has the right of survivorship. That is, if one spouse dies, title to the entire estate passes to the survivor. |