When buying or selling a property, it always helps to have a basic
understanding of real estate terms. In this on going series of articles, we take
a look at definitions starting with "home inspection."
1) Home Inspection - an inspection of the condition of a home. They are done
item by item, from roof to foundation, and include looking closely at things
like plumbing, heating, air conditioning, sinks, tubs, and faucets, and any
appliances which convey. The general concept is that the home inspector is
trained to spot problems that typical Susie and Sammy Homebuyer are likely to
miss. They are not usually intended to bring up discussion about items Susie and
Sammy can easily see for themselves like the color of the wall paint or what the
carpets look like.
2) Home Warranty Policy - an insurance policy which pays for repairs to the
working systems (heat, air conditioning, plumbing, etc.) and appliance repairs
during the first year of home ownership. Details vary. Usually there is a
deductible amount. They can be bought by the buyer or by the seller for the
buyer.
3) Limited Power of Attorney - a writing which gives another person the legal
ability to act for and sign papers for the buyer or seller in connection with
the purchase and sale of a specific real property. (An example of this happened
last summer when a friend of my son's gave his wife a limited power of attorney
to enable her to finalize the sale of their home after he left for Iraq with
members of his National Guard unit. A happy postscript is that the young man has
now returned home.)
4) Personal Property - appliances which are not built-in, play equipment
which is not attached, furniture, plants in containers.
As you can image, there are many real estate terms for which you have a
general understanding. In our next article, we continue with the terms starting
with "Pre-Approval Lender Letters."