Real Estate Encyclopedia: Page 13
- The Real Estate Beginners Guide to Bilateral Contracts in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A bilateral contract is a legally binding agreement in which both parties make mutual promises, such as a buyer promising to pay and a seller promising to transfer title.
- Sales agreements, listing agreements and leases are the most common bilateral contracts in real estate.
- A valid contract needs an offer, acceptance, consideration, competent parties and a lawful purpose.
- If one side breaches, the other may seek damages, cancellation or specific performance.
- A unilateral contract binds only one party until the other performs.
A bilateral contract is an agreement in which each party makes a binding promise to the other, so both sides are obligated from the moment it is signed.
- The Real Estate Beginners Guide to Beneficiaries in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A beneficiary in real estate is a person or entity legally entitled to receive a property or its benefits through a will, trust or deed.
- Common types are primary, contingent, trust, will and deed (such as transfer-on-death deed) beneficiaries.
- If no beneficiary is named, a property typically goes through probate court.
- Transfer-on-death deeds and trusts can let property pass outside probate, subject to state law.
- Inherited property may carry estate or capital gains tax consequences, and any mortgage usually stays attached to the property.
A beneficiary is a person, group or entity that is legally entitled to receive ownership of, or income from, real estate through a will, a trust or a deed.
- The Real Estate Beginners Guide to Before-Tax Income in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Before-tax income, also called gross income, is what a borrower earns before taxes, Social Security, Medicare and retirement contributions are deducted.
- Lenders measure a borrower's debt-to-income (DTI) ratio against gross monthly income, not take-home pay.
- A borrower with $6,000 in gross monthly income and a 28% housing guideline would qualify for about a $1,680 monthly housing payment.
- Gross income can qualify a buyer for more than they comfortably afford, so budgeting from after-tax income is the safer check.
Before-tax income is a person's total earnings from all sources before income taxes and other deductions are taken out, and it is the starting figure lenders use to decide how much a borrower can afford.
- The Real Estate Beginners Guide to Basis Points in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A basis point (bps) is one one-hundredth of a percent, 0.01%, so 100 basis points equal 1%.
- Lenders and investors quote rate changes in basis points to avoid confusing a 0.25% change with a 25% change.
- On a $300,000 loan, a 50 bps rate increase raises the monthly payment by more than $80 and total loan costs by more than $30,000.
- Cap rates, yields and discount points are all commonly discussed in basis points.
- Divide basis points by 100 to get percentage points: 25 bps is 0.25%.
A basis point is one one-hundredth of one percent (0.01%), the unit lenders, investors and economists use to describe small changes in interest rates, yields and fees.
- The Real Estate Beginners Guide to Bargain and Sale Deeds in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A Bargain and Sale Deed transfers real estate ownership but, unlike a warranty deed, does not guarantee that the title is free of liens, encumbrances or defects.
- It is commonly used in foreclosure sales, tax sales, and by fiduciaries such as executors and trustees.
- Buyers carry the title risk, so a title search and title insurance are essential.
- Like other deeds, it must be recorded with the local county clerk or recorder.
- Its legal effect and how common it is vary by state; adding covenants creates a Bargain and Sale Deed with Covenants.
A Bargain and Sale Deed is a deed that conveys a seller’s interest in real estate without making warranties about the title.
- The Real Estate Beginners Guide to Bankruptcy in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Bankruptcy is a legal process through which individuals or businesses that cannot repay their debts seek relief under court supervision.
- Total U.S. bankruptcy filings were 574,314 in the 12 months ending December 31, 2025, up about 11 percent from 517,308 the year before, according to the Administrative Office of the U.S. Courts.
- Chapter 7 liquidates non-exempt assets, Chapter 13 is a 3–5 year repayment plan for individuals with steady income, and Chapter 11 reorganizes business debt.
- A bankruptcy filing generally triggers an automatic stay that halts most creditor actions, including foreclosure, but the court can lift it on a creditor’s request (11 U.S.C. § 362).
- Bankruptcy stays on credit reports for about 7–10 years and lowers credit scores, so new mortgages usually require a waiting period.
Bankruptcy is a federal court process that lets people or businesses who cannot pay their debts either liquidate assets or follow a court-approved repayment plan.
- The Real Estate Beginners Guide to Bank-Owned Properties (REO) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A bank-owned property, or Real Estate Owned (REO) property, is real estate that reverted to the lender after failing to sell at a foreclosure auction.
- ATTOM reported that lenders repossessed 46,439 U.S. properties through foreclosure (REO) in 2025, up 27 percent from 2024.
- REOs are typically listed on the MLS by agents who specialize in them and are sold as-is, without repairs or warranties.
- Unlike at auctions, REO buyers can usually inspect the property and often use conventional, FHA or VA financing.
- Banks typically clear liens before resale, but buyers should still run a title search and budget for repairs.
A bank-owned property (REO) is a home that a lender owns after it went unsold at a foreclosure auction, and that the lender now sells to recover part of the unpaid loan.
- The Real Estate Beginners Guide to Bank Auctions in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A bank auction is the sale of a foreclosed property by the lender, usually a bank, to recover unpaid mortgage debt.
- The highest bidder pays a deposit immediately and must settle the balance within a set timeframe, commonly 15–30 days.
- Properties are typically sold as-is, with limited or no interior inspection, and many auctions require cash or certified funds.
- Some auction properties carry unpaid taxes or liens, so a title search before bidding is essential.
- Foreclosure and auction rules, notice requirements and redemption periods vary by state.
- A property that does not sell at auction can become bank-owned (REO).
A bank auction is a public sale at which a lender sells a foreclosed property to the highest bidder to recover an unpaid mortgage. Depending on the state, the sale may be run by a trustee, sheriff or court officer on the lender’s behalf.
- Bandit Signs: Real Estate Beginner's Guide to Rules, Risks and Options Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A bandit sign is a lightweight sign, such as paper, cardboard or corrugated plastic, placed illegally on public property or in the right-of-way, per a 2021 City of Houston presentation.
- A sign can be a bandit sign because of where it stands, not what it says.
- Texas H.B. 3611, effective September 1, 2025, caps civil penalties at $1,000 for a first violation, $2,500 for a second, and $5,000 for a third or later.
- Under H.B. 3611, liability reaches the person who places a sign, the person who commissions it, and the person whose commercial advertisement is on it.
- Bandit sign rules are local, so confirm the code for each city and state before placing any sign; nobody publishes dependable response rates, so track your own results.
Goliath Data publishes this entry and sells one of the services it mentions. Laws, fines and postage were read on the linked government pages on November 5, 2026, and can change.
- The Real Estate Beginners Guide to Balloon Payments in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A balloon payment is a lump-sum payment due at the end of a loan term, after a period of smaller regular payments.
- The Consumer Financial Protection Bureau (CFPB) describes a balloon payment as a large, one-time payment at the end of the loan term, and says it is generally more than two times the loan’s average monthly payment.
- Balloon payments appear in balloon mortgages, commercial loans and developer financing.
- Borrowers prepare by refinancing before it is due, selling the property, saving a reserve, or negotiating a modification.
- Missing a balloon payment can lead the lender to foreclose.
A balloon payment is the large final payment that clears the unpaid balance of a loan whose regular payments did not fully pay it off.
- The Real Estate Beginners Guide to Balloon Mortgages in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A balloon mortgage is a home loan with lower regular payments for a set term, usually 5, 7 or 10 years, followed by one large lump-sum payment of the remaining balance.
- Balloon mortgages are riskier than traditional 15- or 30-year mortgages because the borrower must refinance, sell or pay cash when the balloon comes due.
- The Consumer Financial Protection Bureau (CFPB) says balloon payments are not allowed in loans deemed a Qualified Mortgage, with some limited exceptions.
- Balloon mortgages are less common in residential lending but remain widely used in commercial real estate financing.
- Typical exit options are selling the home, refinancing, or paying the balloon from savings or expected income.
A balloon mortgage is a home loan whose regular payments do not pay off the balance, so a large final payment is due at the end of a short term.
- The Real Estate Beginners Guide to Balloon Loans in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A balloon loan is a loan with smaller regular payments during its term and one large lump-sum payment of the remaining principal at the end.
- Balloon loan terms are typically 5–7 years, and monthly payments may cover only interest or part of the principal.
- The Consumer Financial Protection Bureau (CFPB) defines a balloon payment as a large, one-time payment at the end of the loan term, and says balloon payments are not allowed in loans deemed a Qualified Mortgage, with some limited exceptions.
- A borrower can exit a balloon loan by refinancing, selling the property, or paying the balance from savings or expected income.
- The main risks are refinancing risk, market risk and foreclosure if the balloon payment is not paid.
A balloon loan is a loan that is not fully paid off by its regular payments, so the borrower owes one large final payment, the balloon payment, when the term ends.
- The Real Estate Beginners Guide to Balance Sheets in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A balance sheet is a financial statement that summarizes a company’s assets, liabilities and equity at a specific point in time; the U.S. Securities and Exchange Commission describes it as providing detailed information about a company’s assets, liabilities and shareholders’ equity (SEC Beginners’ Guide to Financial Statements).
- Every balance sheet follows the equation Assets = Liabilities + Equity.
- In real estate, assets include cash and rental property, liabilities include mortgages and accounts payable, and equity is what remains for the owner.
- A balance sheet is a static snapshot, and book values may differ from market values as property values change.
- Lenders, investors and partners use balance sheets to judge financial stability, and negative equity, where liabilities exceed assets, is a red flag.
A balance sheet is a snapshot of what a real estate business owns (assets), what it owes (liabilities) and the value left over for its owners (equity) on a single date.
- The Real Estate Beginners Guide to Avulsion in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Avulsion is the sudden removal or addition of land caused by natural forces such as floods, hurricanes, landslides, earthquakes or volcanic activity.
- In most jurisdictions, property boundaries remain unchanged after avulsion, because the original legal description continues to define ownership.
- Erosion is gradual and can permanently change ownership as the land disappears, while avulsion is sudden and the landowner generally keeps rights to the lost land.
- Standard homeowner’s insurance typically does not cover avulsion-related land loss, and flood insurance or specialized policies may help.
- Courts rely on property deeds, surveys and long-standing boundary lines to resolve avulsion disputes, and rules can vary by state.
Avulsion is the sudden loss or gain of land caused by a natural event, as opposed to the slow changes of erosion or accretion.
- The Real Estate Beginners Guide to Average Age of Accounts (AAOA) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Average Age of Accounts (AAOA) is the average length of time your credit accounts have been open, found by adding the age of each account and dividing by the number of accounts.
- Length of credit history makes up 15% of a FICO Score, according to myFICO.
- Opening a new account lowers AAOA, and closed accounts in good standing generally stay on your report for up to about 10 years (negative items about 7) and keep counting until they fall off.
- A common benchmark is that an AAOA of 7 or more years is considered strong, though a short AAOA does not necessarily prevent you from buying a home.
- Being added as an authorized user to an older account can raise AAOA, while quick fixes do not exist because AAOA grows slowly over time.
- Lenders use AAOA as one input when assessing mortgage risk and setting terms, alongside income, debt-to-income ratio and payment history.
Average Age of Accounts (AAOA) is a credit metric that shows lenders how mature your credit history is by averaging how long each of your accounts has been open.
- The Real Estate Beginners Guide to Automated Valuation Models (AVMs) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An automated valuation model (AVM) is a software tool that uses algorithms, statistical techniques and large data sets to estimate the market value of a property.
- AVMs return a value in seconds, usually with a confidence score or range, while a traditional appraisal takes days and includes an in-person inspection.
- AVMs cannot see property condition, renovations or unique features, so different AVMs can give different values for the same home.
- Lenders use AVMs to screen mortgage applications and decide whether a full appraisal is needed, but most purchases still require a certified appraisal.
- A joint rule from the OCC, Federal Reserve Board, FDIC, NCUA, CFPB and FHFA took effect October 1, 2025, and requires institutions that use AVMs in certain mortgage credit decisions to follow quality control standards (FHFA, 2025).
- Investors use AVMs to screen large numbers of properties and then pair them with on-the-ground research.
An automated valuation model (AVM) is a computer-based system that estimates what a property is worth by analyzing comparable sales, location, property attributes and market trends.
- The Real Estate Beginners Guide to Automated Underwriting in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Automated underwriting (AU) is a computerized system that analyzes a mortgage application against pre-set lending guidelines and returns a recommendation such as approve, refer or refer with caution.
- The major automated underwriting systems are Desktop Underwriter (DU) for Fannie Mae, Loan Product Advisor (LPA) for Freddie Mac and TOTAL Scorecard for FHA loans.
- AU can reduce mortgage decisions from weeks to days, hours or even minutes, but it provides recommendations and the lender makes the final decision.
- Unusual or complex files, such as a self-employed borrower whose income documents do not fit standard categories, can still require manual underwriting.
- AU reduces human subjectivity, but fairness depends on the quality of the data and algorithms, and incomplete data can lead to inaccurate results.
Automated underwriting is software that reviews a borrower’s credit history, income, debt and other financial details against lender or investor guidelines, such as Fannie Mae or Freddie Mac requirements, to recommend whether a mortgage should be approved.
- The Real Estate Beginners Guide to Authorized Agents in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An authorized agent is a person or entity legally permitted to act on behalf of another party, called the principal, in property transactions.
- The agent’s authority comes from a written agreement such as a listing agreement, buyer’s agency agreement, property management contract or power of attorney, and the agent cannot exceed it.
- Common authorized agents in real estate are the buyer’s agent, the seller’s (listing) agent, the dual agent, the property manager, the attorney-in-fact and the closing agent or escrow officer.
- Agents owe their clients fiduciary duties of loyalty, confidentiality and disclosure, and real estate agents and brokers must be licensed by state authorities.
- A principal may be bound by the actions of an authorized agent, so choosing an agent carefully and defining the scope in writing are critical.
- A principal may revoke an agent’s authorization, subject to the contract terms.
An authorized agent is a person or entity with legal permission to act for a principal, such as a buyer’s agent negotiating a purchase or a property manager signing a lease for a landlord.
- The Real Estate Beginners Guide to Attorney-In-Fact in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An attorney-in-fact is a person legally authorized through a power of attorney (POA) to act on behalf of another person, called the principal.
- An attorney-in-fact does not need to be a lawyer; the POA document alone defines what the attorney-in-fact can do.
- The four common real estate POA types are general, special (limited), durable and springing, and only a POA that explicitly grants real estate authority covers property matters.
- An attorney-in-fact owes the principal a fiduciary duty, must act only within the powers the POA states, and should keep records of every action taken.
- Many real estate POAs must be notarized, and in many states a POA used for a recorded document such as a deed must be recorded with the county recorder (rules vary by state), and title companies, banks and lenders must accept the POA for it to work at closing.
- A competent principal can revoke a POA at any time, and a durable POA keeps working if the principal later becomes incapacitated while a non-durable POA may not.
An attorney-in-fact is the person a principal names in a power of attorney to sign documents and make decisions for the principal, such as signing a deed or closing papers when the principal cannot attend.
- The Real Estate Beginners Guide to Assumption Fees in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assumption fee is a charge a lender imposes when a mortgage is transferred from the seller to a new borrower.
- Assumption fees generally range from 0.5% to 1% of the loan balance, and some lenders charge flat fees of $500 to $1,500.
- The buyer usually pays the assumption fee, often at closing, and it is typically non-refundable.
- Government-backed loans (FHA, VA, USDA) often have capped assumption fees regulated by federal guidelines; for FHA, HUD raised the maximum processing fee from $900 to $1,800 in its May 2024 Handbook 4000.1 update (HUD FHA INFO 2024-30).
- The assumption fee is usually small compared with the long-term savings of assuming a low-rate mortgage.
An assumption fee is the amount a lender charges to review, approve, and record the transfer of an existing mortgage to a new borrower.
- The Real Estate Beginners Guide to Assumable Mortgages in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assumable mortgage lets a buyer take over the seller’s existing home loan, including its interest rate, balance, and repayment schedule.
- FHA, VA, and USDA loans are the loan types typically assumable; most conventional loans are not.
- The buyer must qualify with the lender, and sellers should obtain a release of liability.
- The buyer usually pays the gap between the loan balance and the purchase price in cash or through secondary financing.
- Assumable mortgages matter most when market interest rates are higher than the seller’s locked-in rate.
An assumable mortgage is a home loan whose existing terms, including the interest rate and remaining balance, can be transferred from the seller to a qualified buyer with the lender’s approval.
- The Real Estate Beginners Guide to Assignment of Mortgage in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assignment of mortgage is the legal transfer of a lender’s rights and obligations under a mortgage to another party, usually another lender or financial institution.
- An assignment does not change the loan terms; the interest rate and payment schedule stay the same, but payments go to the new holder.
- Under 15 U.S.C. § 1641(g), the new owner of a mortgage loan must notify the borrower in writing within 30 days after the loan is sold or transferred.
- Assignments are recorded in county land records, which makes the transfer public.
- A mortgage assumption is different: the borrower is replaced, which typically needs the lender’s approval.
An assignment of mortgage is the recorded document by which a lender transfers its interest in a mortgage to a new holder, without changing the borrower’s loan terms.
- The Real Estate Beginners Guide to Assignment Fees in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assignment fee is a charge paid when one party transfers its rights and obligations under a lease or purchase contract to another party.
- In wholesale real estate, the assignment fee is the wholesaler’s profit: the spread between the contract price and what the new buyer pays.
- Commercial lease assignment fees can range from a few hundred to several thousand dollars, and wholesale fees are often thousands or tens of thousands.
- Assignment fees are negotiable in most cases, especially in commercial leases, and are generally non-refundable.
- Wholesale assignment fees must be disclosed to all parties, and some states regulate wholesaling.
An assignment fee is the payment made to a landlord, contract holder, or wholesaler for transferring contract rights to a new party.
- The Real Estate Beginners Guide to Assignment Clauses in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assignment clause is a contract provision that lets one party (the assignor) transfer its rights and obligations to another party (the assignee).
- Assignment clauses appear in purchase agreements, leases, and financing contracts, and they are the basis of wholesale real estate deals.
- Many contracts require the other party’s consent before an assignment is valid, and some contain no-assignment clauses that prohibit it.
- The assignor may remain secondarily liable if the assignee defaults, unless the contract releases them.
- Rules and restrictions on assignments vary by state and by contract.
An assignment clause is the contract language that decides whether, and on what conditions, a party may hand its rights and duties under the contract to someone else.
- The Real Estate Beginners Guide to Asset Allocation in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Asset allocation in real estate is how an investor distributes capital among property types, markets, and risk levels.
- The main real estate asset classes for allocation are residential, commercial, industrial, land, and specialty properties.
- Diversification is the practice of spreading investments; asset allocation is the strategy that decides how you spread them.
- Asset allocation does not guarantee profit, but it reduces exposure to a downturn in any single sector.
- Investors should review their allocation at least annually, or when market conditions shift significantly.
Asset allocation in real estate is the strategy of dividing an investor’s capital across property types, locations, and risk levels to balance risk and reward.
- The Real Estate Beginners Guide to Assessor Parcel Numbers (APN) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An Assessor Parcel Number (APN) is a unique numerical code assigned to a parcel of land by the local tax assessor's office.
- APNs link tax bills, assessed values, deeds, and title records to the correct parcel, and they do not change when a street is renamed.
- An APN usually encodes a map book number, page number, parcel number, and sometimes a sub-parcel, and the format varies by jurisdiction.
- Splitting or merging parcels can create new APNs, and each condo unit typically has its own APN.
- Investors use APNs to research tax history, liens, and prior sales, and to find distressed or tax-delinquent properties.
An Assessor Parcel Number, or APN, is the unique identification number a county or local assessor gives to each parcel of land for tax and record-keeping purposes.
- The Real Estate Beginners Guide to Assessors in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assessor is a local government official who determines the taxable value of homes, businesses, and land in a city, county, or township.
- Assessors use three valuation methods: the sales comparison approach, the cost approach, and the income approach.
- Assessors assign values only; tax rates (mill rates) are set by local governments.
- An assessor works for the government to set taxable value, while an appraiser independently estimates market value.
- Property owners can legally appeal an assessment they believe is too high.
An assessor is the local government official who assigns a taxable value to each property in a jurisdiction so that property taxes can be calculated fairly and consistently.
- The Real Estate Beginners Guide to Assessment in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An assessment is the valuation of a property by a public authority to determine its taxable value or its proportional share of public improvement costs.
- The three main types are tax assessments, special assessments for improvements such as streetlights or water lines, and reassessments.
- Assessors commonly use the sales comparison, cost, and income methods, and many jurisdictions apply an assessment ratio such as 80% of market value.
- Property owners have the right to receive notice of an assessment and to appeal it if it is inaccurate.
- Assessments differ from appraisals: an assessment serves taxes or improvement costs, while an appraisal estimates market value for sales or financing.
An assessment is a charge or valuation set by a government body, either the taxable value of a property or the share of a public improvement cost that a property owner must pay.
- The Real Estate Beginners Guide to Assessed Value in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Assessed value is the dollar amount a local government tax assessor assigns to a property to calculate property taxes.
- Assessed value is used strictly for taxation, unlike appraised value, which a professional appraiser determines during a sale or refinancing.
- Many jurisdictions apply an assessment ratio, for example 80% of market value, to reach the final assessed value.
- Property owners can appeal an assessment they believe is inaccurate, and exemptions such as homestead, senior, or agricultural reductions can lower taxable value.
- A property can have an assessed value of $250,000, a market value of $300,000, and an appraised value of $290,000.
Assessed value is the value a local tax assessor places on a property for property tax purposes, which the tax rate is applied to in order to produce the annual tax bill.
- The Real Estate Beginners Guide to Asbestos in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Asbestos is a naturally occurring mineral made of thin, heat-resistant fibers that was widely used in construction, with use peaking between the 1930s and 1970s.
- Asbestos is dangerous mainly when materials are disturbed and fibers become airborne; inhaled fibers are linked to asbestosis, mesothelioma, and lung cancer.
- Common locations include insulation, roofing and siding, floor tiles and adhesives, popcorn ceilings, heating ducts and boilers, and cement products.
- Abatement can range from a few thousand dollars for minor removal to tens of thousands for extensive remediation.
- Sellers who fail to disclose known asbestos risk lawsuits, and professional abatement is required before disturbing asbestos materials.
Asbestos is a group of fibrous minerals used for decades in building materials for insulation and fire resistance, and it is now treated as a hazardous material in real estate.
- The Real Estate Beginners Guide to “As-Is” in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An "as-is" sale means the seller offers the property in its current condition and will not make repairs or improvements, though it does not mean the home is in poor condition.
- As-is does not erase disclosure duties: sellers must still disclose known material defects under state disclosure laws.
- Buyers of as-is homes generally keep the right to inspect and may renegotiate or cancel under an inspection contingency.
- Foreclosures, inherited homes, and investor-targeted listings are the most common as-is sales.
- As-is properties often sell for less, but the discount may or may not cover repair costs.
An as-is sale is a real estate sale in which the seller agrees to transfer the property in its current condition and refuses to pay for repairs, while the buyer accepts the property's condition.
- The Real Estate Beginners Guide to Arbitration in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Arbitration is a form of alternative dispute resolution in which an impartial arbitrator hears both sides and issues a binding decision called an award.
- Real estate arbitration commonly covers contract disputes, construction issues, brokerage commission disputes, and landlord-tenant conflicts.
- Arbitration is usually faster and more private than litigation, but awards generally offer little opportunity to appeal.
- Many real estate contracts include arbitration clauses that require parties to arbitrate instead of sue.
- Mediation helps parties negotiate their own settlement, while arbitration results in a decision that is imposed on them.
Arbitration is a private process in which a neutral third party, the arbitrator, hears evidence from both sides of a dispute and issues a decision that is usually binding.
- The Real Estate Beginners Guide to Appurtenant Easements in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An appurtenant easement is a legal right that lets one property (the dominant estate) use part of another property (the servient estate) for a specific purpose such as access or utilities.
- Appurtenant easements "run with the land": they transfer automatically to whoever buys the dominant property.
- The four common types are access, utility, right-of-way, and drainage easements.
- Easements can be created by deed, necessity (such as a landlocked lot), prescription (long-term use), or agreement.
- An easement in gross benefits a person or company, such as a utility, while an appurtenant easement benefits a property.
An appurtenant easement is a recorded right attached to one parcel of land that allows its owner, and every later owner, to use a defined part of a neighboring parcel.
- The Real Estate Beginners Guide to Appurtenant in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Appurtenant describes a right, feature, or structure legally tied to land that transfers with the property when ownership changes.
- Appurtenant items include easements, water and mineral rights, garages, fences, and in-ground pools.
- In condominiums and planned communities, rights to shared spaces such as parking lots or clubhouses may be appurtenant to the unit.
- Movable personal property, such as furniture, is not appurtenant and must be listed in the contract if it is included in a sale.
- Appurtenant easements bind both the dominant (benefiting) and servient (burdened) estates.
Appurtenant is the legal adjective for anything that belongs to a parcel of land and goes with it to each new owner.
- The Real Estate Beginners Guide to Appurtenance in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An appurtenance is a feature, improvement, or right permanently attached to a property that transfers automatically to the new owner when the property is sold.
- Appurtenances come in four kinds: physical (garages, fences, in-ground pools), natural (trees, water rights, mineral rights), legal (easements, covenants) and improvements (septic systems, driveways, utility lines).
- Unlike personal property such as furniture or appliances, an appurtenance stays with the real estate unless the sales contract explicitly excludes it.
- Deeds usually carry the phrase "all rights, privileges, and appurtenances belonging thereto."
- Appurtenances can raise value (water rights, deeded beach access) or lower it (a utility easement or shared driveway).
Appurtenance is the real estate term for a right, privilege, or attached feature that belongs to a piece of land and passes to each new owner with it.
- The Real Estate Beginners Guide to Appreciation in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Appreciation is the increase in a property’s market value over time compared with its purchase price.
- For example, a home bought for $250,000 and sold for $325,000 has appreciated $75,000, or 30%.
- The Federal Housing Finance Agency reported that U.S. house prices rose 2.2 percent from May 2025 to May 2026, showing that appreciation varies by period.
- Appreciation is not guaranteed: downturns, neighborhood decline or poor condition can slow or reverse it.
Appreciation is the rise in a property’s market value over time, usually measured as a percentage of the original purchase price.