Buy A Foreclosure Home

A major investment is required when purchasing a home. Knowledge of the various legal terms used along with the legal issues pertaining to home purchase is important. The following are some of the terms you need to know before going through with a home purchase.

Joint Tenancy

If you are purchasing the home with someone else, you will likely enter into a joint tenancy. As a joint tenant, you and one or more other people are considered the owner of the home or property that you have purchased. If any of the joint tenants expires, his or her rights to the property are passed on to his or her survivors.

Land Tax

Land tax is that tax which you pay on the property you own. The value of the property determines the land tax. You need not pay land tax on the property that is your principal place of residence.

Liabilities and Liens

There should be no liens or liabilities on the home you are planning to purchase and this can be determined by looking at the title deed of the home you are planning to purchase. A liability is any outstanding debt that the previous owner may have had in relation to the home. If there are claims, that another person or business may have on the property, they are called as liens. When someone else has the right to the home because they are owed money liens are put into place. A bank that lent money to the previous homeowner as well as judgments or unpaid taxes can put a lien in place on the property.

Appraised Value

When you have decided on the home you are interested to purchase, you will need to have an appraiser visit the home in order to appraise its value. The amount that the lender is willing to loan toward the purchase of the home is generally the appraised value.

It is important to note that the appraisal is not the same as an inspection. If you are interested in purchasing a home, it is important that you also have an inspection performed. This way, you can make sure you are fully aware of the condition of the home before you make a purchase. This inspection falls in line with another term you should be aware of, caveat emptor, which stands for “let the buyer beware.” According to caveat emptor, it is your duty to ensure that you are satisfied with the home prior to purchasing it.