Real Estate Definitions Archives – Global Mortgage Lender

05

Nov

Real Estate Definitions Condo, HOA, PUD

HOA : The Role Of Homeowners Associations In Housing Communities

Homeowners associations (HOA) are legal corporations formed by a real estate developer to market, to manage, and to sell homes and lots in a residential subdivision. They're most commonly formed for condominiums and planned urban developments (PUDs), a category which includes suburban communities. HOA Articles of Incorporation typically grant developers privileged voting rights in governing the association during its infancy, while providing the means for the developer to exit financial and legal responsibility for the organization, transferring ownership to the homeowners of the association. This transfer typically occurs after a predetermined number of units have been sold -- often two-thirds…

Simple Real Estate Definitions : Right To Cancel

As part of the federal Truth-in-Lending Act, refinancing homeowners are granted a 3-day "cooling off" period post-closing during which they retain the right to rescind, or "cancel", their recent refinance without penalty or cost. The Right To Cancel is protection against surprises at closing and/or a change of heart. It's also a safety valve for homeowners signing paperwork under duress. With 3 days to revisit and rethink the terms of a loan, a homeowner can maintain tighter control of his/her financial situation. If you ever have the wish (or need) to execute your right to rescind, be aware that the…

Simple Real Estate Definitions : Home Inspection

When you preview homes as a home buyer, you can get a good feel for the home's visible traits -- its finishes, its room counts, and its landscaping, for example. What you can't get a feel for, though, is the home's "bones". It's for this reason that real estate professionals recommend that you have a property formally inspected immediately after going into contract for it. A home inspection is a thorough, top-to-bottom check-up of a property's structure and systems. It is not the same as a home appraisal, which is a valuation of the property. By contrast, home inspections are…