| There is no question about it that people are more | | | | of a property. |
| familiar with Real Estate than any other product or | | | | - Lease: An instrument that binds the lessee and the |
| commodity. | | | | lessor of for a stated period of time. |
| These transactions involve either renting, selling or | | | | - Mortgage: An instrument that secures the interest of |
| borrowing against the real estate. To conduct these | | | | the lender in the subject property |
| transactions, there are primarily three kind of legal | | | | - Mortgage bond / Note / / An Instrument that with a |
| instruments; they are more particularly described as | | | | promise to Pay: |
| Deed, Mortgage and Lease. | | | | - Option on real estate: An instrument that gives option |
| These primary legal instruments have further auxiliary | | | | to the buyer or the lessee to exercise certain rights |
| instruments such as: | | | | relating to buying or leasing of the subject property |
| - Assignment: Transfer of any real estate related right | | | | - Release from the current contract: An instrument |
| - Chattel Mortgage: Mortgage on personal property | | | | that releases one or both parties from a previously |
| - Construction loan: Interim financing during the course | | | | signed agreement. |
| of construction | | | | - Subordinate agreement to any of the foregoing |
| - Contract of sale / Agreement of Purchase And Sale: | | | | instruments: An instrument that makes the prior lien a |
| Agreement of Purchase and sale defining the terms | | | | secondary lien. |
| and all essentials of the sale | | | | - Title policy or title insurance: An insurance policy that |
| - Deed: Instrument conveying the title or an interest in | | | | guarantees the title of a property |
| real estate | | | | These instruments may have different names in |
| - Deed of trust / Escrow: Conditional execution and | | | | different countries and languages but almost all of the |
| deposit of a written instrument | | | | legal instruments can be categorized in one of the |
| - Estoppel certificate / Status certificate: A written | | | | above stated categories. |
| instrument that may limit the responsibility of the parties | | | | Contracts involving real estate should be in writing; a |
| involved and also the rights of third parties. It may be | | | | verbal contract may not be a valid contract and also it |
| used to verify the status of the property such as its | | | | may be difficult to enforce. Unless you have academic |
| mortgage and in case of a condominium the | | | | training or experience, you must seek the help of a |
| operational, legal and financial dimensions of the | | | | professional while preparing or signing any one of |
| condominium corporation. | | | | these documents. |
| - Extension agreement: An instrument that extends the | | | | The author, Nawel K Seth is a veteran in the field of |
| terms of the agreement | | | | Real Estate, mortgages, banking and is a regular |
| - Installment contracts: An instrument that stipulates | | | | contributor of articles on the web. |
| periodic payments by the buyer for securing the deed | | | | |