Entries for the ‘Condominium’ Category

What is the Commission Paid at Settlement?

The commission paid at settlement (closing) is the total commission to be paid.  It may be charged to the Buyer, the Seller, or both

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What is a Deposit?

A deposit is defined as a sum of money, or its equivalent, delivered to a real estate licensee as earnest money, payment, or partial payment in connection with a real estate transaction.  An earnest money deposit may be in the form of cash, currency, or any medium of exchange or securities that can be converted [...]

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What is an Escrow Account?

An Escrow Account is an account for the deposit of money a disinterested third party holds in trust for others. For a mortgage loan, an escrow account is one that is established to hold seperate funds for the purpse of paying bills such as homeowner’s insurance and property taxes.

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What is HO6 Insurance?

Due to the housing crisis and a revamped Fannie Mae and FHA, lenders are now making HO6 insurance a requirement for any condominium purchase.    The condo policy will provide coverage on the interior walls and for personal property held within the dwelling.  This policy will usually also provide liability coverage for the owner.

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What is the Property Tax Disclosure?

Prospective buyers of residential property must be presented a disclosure summary concerning ad valorem taxes before or at the time of execution of the contract for sale.   The property tax disclosure summary is to caution prospective buyers that they can not rely on the amount of the seller’s property taxes as an indication of the [...]

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What is an Assessment (for a Condominium)?

An assessment is a unit owner’s share of the amount of money required to pay the common expenses of the association and the condominium.   The assessment may go towards items such as building maintenance, landscape, water, sewer, trash, roof, reserves…etc The assessment is usually paid monthly and it is important to know the amount of [...]

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What is a Proxy?

A proxy is written authorization for one person to act or vote for another at a meeting of the association.

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What is a Quorum?

A Quorum is the number of voting interests or board members of an association who must be present at a meeting in order to legally transact business.

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What is a Special Assessment?

A special assessment is any assessment levied against unit owners other than the regular assessment required by an annual budget.

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What is Lien Priority?

If there are two or more liens on a property, the priority of liens determines the order in which the liens will be satisfied if the property must be sold.  The priority of most liens is the date and time that the lien was recorded in the public records.  Real estate (property) tax liens and [...]

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