6th December 2019

sfgate

14

How does a land sale contract work?

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Buying real estate through a land contract is fairly straightforward. The buyer gives the seller a down payment for the home or piece of land and the seller acts as the bank, financing the balance of the purchase price. The buyer and seller work together to negotiate an interest rate at the time of purchase.

Regarding this, what is a land sale contract?

A land contract is a form of seller financing. It is similar to a mortgage, but rather than borrowing money from a lender or bank to buy real estate, the buyer makes payments to the real estate owner, or seller, until the purchase price is paid in full.

What is the difference between a land contract and rent to own?

The big difference between a rent-to-own arrangement and a land contract is that the seller maintains control of and responsibility for the property in a lease deal. The seller is responsible for the maintenance of the property, any repairs and for paying property taxes and insurance, the same as any landlord.

1

What is a grantee in a deed?

Property deeds are used to convey real property from a grantor (seller) to a grantee (buyer). For a deed to be legally operative, it must include the identification of the grantor and grantee, and the adequate description of the property.

2

Who is the grantee on a quit claim deed?

A quitclaim deed is a legal instrument that is used to transfer interest in real property. The entity transferring its interest is called the grantor, and when the quitclaim deed is properly completed and executed, it transfers any interest the grantor has in the property to a recipient, called the grantee.

3

How much does it cost to get a quit claim deed?

Consult a lawyer before doing a quit claim on your own. Prices can run from free to $1000s depending on the circumstances. An average intra-family quitclaim may be $150-$250 plus Town recording of $53 for the first page and $5 for each additional page

4

Can you cancel a quit claim deed?

The only way a quitclaim deed can be cancelled is if it has not been legally completed in the first place. That said, it is possible to reverse the quitclaim transaction by carrying out a new transaction, whereby the grantee under the original quitclaim transfers the property back to the original grantor.

5

Are quitclaim deeds taxable?

Quitclaim deeds are not taxable when they transfer ownership to a spouse. Quitclaim deeds also are not taxed when they transfer property to qualifying charities. For income tax purposes, you cannot deduct the value of a gift from income tax unless the gift is to a charitable organization.

6

Is there a statute of limitations on filing a quit claim deed?

Statute of Limitations. In most states, there is a period of two years following the deed's filing date during which the quitclaim deed can be contested. If either the grantor or grantee wants to challenge the validity of the quitclaim deed, the challenge must be made during this time period.

7

Can you pay someone else's property taxes?

However, homeowners owing delinquent property taxes usually have some time to pay and can even have somebody else pay them. But just because you pay back taxes on someone else's property doesn't mean you'll gain any sort of legal interest or ownership right to that property.

8

Do you have to pay taxes on inherited property that was sold?

This will usually be more than the prior owner's basis. The bottom line is that if you inherit property and later sell it, you pay capital gains tax based only on the value of the property as of the date of death. Example: Jean inherits a house from her father George.

9

How much money can you inherit without having to pay taxes on it?

Most families won't be exposed to the estate tax, and there is no inheritance tax in California. However, if your total assets exceed $5.43 million in value, you are exposed to the federal estate tax.

10

How do you determine fair market value of real estate?

Fair market value is defined as "the price for which you could sell your property to a willing buyer, when neither of you has to sell or buy and both of you know all the relevant facts." To determine your property's fair market value, the best method is to compare the prices others have paid for something comparable.

11

What is fair market value based on?

Fair market value (FMV) is an estimate of the market value of a property, based on what a knowledgeable, willing, and unpressured buyer would probably pay to a knowledgeable, willing, and unpressured seller in the market.

12

How is the market value of a home determined?

Your local assessor determines the estimated market values of all the properties in the community. Your assessor may use the sales comparison approach or any other method to arrive at your property's estimated market value, which is available on the assessment roll and your property tax bill.

13

How is the market value determined?

Market value is also commonly used to refer to the market capitalization of a publicly-traded company, and is obtained by multiplying the number of its outstanding shares by the current share price.

14

What does an appraiser look at?

Condition Of The Interior. Even if the roof, siding and foundation are all in excellent shape, the interior of your home is just as important to the appraiser when assessing value. Things like windows and doors, flooring, walls, plumbing, electrical, kitchen and bathroom are all important parts of a home.

15

What happens when the appraisal comes in too low?

Don't panic if the appraisal comes in low. The lender cares about the appraisal only to the extent it affects the loan-to-value ratio. A low appraisal does not mean the lender won't lend. It means the lender will make a loan based on the ratio agreed to in the contract at the appraised value.

16

How long does it take to close on a house after the appraisal?

If the loan officer (LO) have all the documentation need it, the appraisal will be sent to the lender underwriter and it may take 48 hours (depending on how busy they are), after that it will be sent to the closing department and that may take another 48 hours.

17

How long does it take to close after final approval?

In fact, some mortgage lenders may be comfortable with home sale closings two to three days after a mortgage loan application's final approval. Generally, though, it usually takes about a week after final mortgage loan approval before a home's sale closing takes place.

18

How long does it take to close on a piece of land?

Typically a land loan appraisal is between 2 to 4 weeks. It is not uncommon however, to sometimes have to wait as long as 6 to 8 weeks for a land appraisal to be completed. 3. The title work usually does not require more than a week to complete and be ready for closing.

19

Who pays for the preparation of the deed?

Deed Preparation – This fee is for drafting the document that conveys the property from the seller to the buyer and states the warranties and rights that the seller is granting the buyer. In most closings, I find that the seller pays this fee, at closing.

20

What is title insurance on land?

Title insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans. The vast majority of title insurance policies are written on land within the United States.

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