Zuberi-builders-logo
marge
Call now +92 3001333888
Email info@zuberibuilders.com
BTK
8 Real Estate Terms to Know Before Buying a House | Common terms used for real estate
Real estate is one of the most important and most expensive industries in our lives. So, it’s a good idea to know what you are talking about when you talk about real estate. As a real estate agent, you have to know all the terms and conditions of buying a house. You can't just look at the price, you need to know what it is worth.

Buy and sell

The Federal Civil Code defines the sale as the process in which one of the parties agrees to transfer ownership of something to another individual, and this other individual agrees to pay for the acquisition of this object. In real estate, the contract of sale refers to the acquisition of real estate.

Promise of sale

You may have found the ideal house and you are ready to buy it, but formalizing the purchase and scheduling its deed is not an immediate process. As long as the purchase contract is not formalized, the house of your dreams can continue to be sold to the public, and you could lose it at the hands of another. To avoid this situation, there are promises of sale, a contract that is made between the owner and the interested party, in order to ensure the future sale of the property, establishing its future conditions such as the date of signing the contract of sale, and price.

Capital gain

When acquiring a property, you must pay the established commercial value of the property. Many times, over time, this value can increase thanks to external factors such as improving the service infrastructure, development of the area, or changes that you make such as remodeling. The increase in the value of the property is known as capital gains, and it is important that you keep it in mind when purchasing a house, as this value could translate into a profit.

Appraisal

When applying for a mortgage loan to buy a house, it is common for the bank to require an appraisal of the property. The appraisal is an appraisal of the property to determine its market value. The appraisals are carried out by expert appraisers, who are certified experts, and are capable of evaluating the property following established methods. This allows the appraisal to be impartial and reflect the true value of the property.

Assessment

A lien is a restrictive financial obligation that is placed on property. A house is under lien if there is a mortgage on it, it is in lien, or there is some type of restriction such as having a right of usufruct. Many times when applying for a mortgage loan, financial institutions will require to know if the property is under lien. For this you must request a Certificate of freedom from encumbrance in the Public Registry of Property.

Public Registry of Property

The Public Registry of Property and Commerce is a government body, in charge of registering all properties in the national territory, as well as the data of their owners, and giving public access to this information. The Public Registry of Property helps to provide transparency to real estate processes such as the sale, lease, inheritance, and the application for mortgage loans.

Mortgage credit

When buying a house, it is very likely that you do not have the capital to pay the price of it. According to the National Catalog of Financial Products and Services, in Mexico there are more than 400 financial institutions that offer loans to buy houses, through mortgage loans. The mortgage loan is a long-term loan where the financial institution takes the property to be purchased with the loan as collateral for payment. In case of acquiring a mortgage loan with the intention of buying a house, the amount that the institution will grant will rarely be greater than the commercial value of the property.

Title deed

The property deed is the document that guarantees the owner of a property as its owner. This document protects you in case you apply for a mortgage loan on the property, lease it, or sell it. According to the National Association of Public Notaries, the cost of a deed is between 4 and 7 percent of the value of the property, although it varies depending on the entity. This document must be made by a notary public, and registered in the public registry of the property, otherwise it will have no value before the law.

Leave a Reply

Your email address will not be published.

Scroll to Top