Real Estate Encyclopedia: Page 15
- The Real Estate Beginners Guide to Zombie Property in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A zombie property is a home vacated by its owner during foreclosure that the lender has not yet repossessed, so no one actively maintains it.
- The owner often remains the legal owner and may still owe property taxes and face code citations.
- Zombie properties contribute to blight and complicate municipal management of vacant homes.
- Land banks and rehabilitation incentives are common ways communities address them.
- Investors can sometimes buy them at a discount, but must check title, liens and repair costs first.
A zombie property is a vacant home whose owner moved out during foreclosure, but whose foreclosure was never completed, leaving ownership and responsibility for upkeep in limbo.
- The Real Estate Beginners Guide to Zero Point Loan in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A zero point loan is a mortgage with no discount points, and often no origination charge, paid at closing.
- The trade-off is a higher interest rate, which raises the total cost of the loan over time.
- Third-party closing costs such as appraisal and title fees still apply, and a zero point loan does not reduce the down payment.
- In a $300,000 example, paying one point ($3,000) to cut the rate pays back in roughly 41 months.
- A zero point loan suits buyers who may sell or refinance soon, while borrowers who stay long-term often come out ahead by paying points.
A zero point loan is a mortgage on which the borrower pays no discount points to buy down the rate, and typically no origination fee, in exchange for a higher interest rate.
- The Real Estate Beginners Guide to Write Offs in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A real estate write-off is a tax deduction for an expense of owning, managing or maintaining property, which lowers taxable income.
- Common write-offs include mortgage interest, property taxes, operating expenses, repairs and depreciation.
- Per IRS Publication 527, residential rental property is generally depreciated over 27.5 years; this guide cites 39 years for commercial buildings.
- Repairs can be deducted immediately, while improvements must be depreciated over time.
- Depreciation taken now can be recaptured as a higher tax bill when the property is sold, so consult a tax professional.
A write-off, in real estate, is an ordinary deduction that lets an owner subtract a qualifying property expense from taxable income.
- The Real Estate Beginners Guide to Wrap-Around Loan in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A wrap-around loan is secondary financing in which a new loan is created while the existing mortgage stays in place.
- The borrower pays the new lender (often the seller), who keeps paying the original mortgage and profits from the interest-rate difference.
- The main risk is the due-on-sale clause: federal law (12 U.S.C. 1701j-3) generally lets lenders enforce it, so the original lender can demand full repayment.
- Wrap-arounds are most useful when the existing loan has a rate below current market rates.
- Proper documentation and legal counsel are essential because the structure is more complex than a standard loan.
A wrap-around loan (or wrap-around mortgage) is a form of seller financing in which the seller extends a new loan to the buyer that "wraps" around the seller's existing mortgage, which stays in place and keeps being paid.
- The Real Estate Beginners Guide to Wholesaling in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Real estate wholesaling is contracting a property with a seller and assigning or selling that contract to a buyer for a fee.
- The wholesaler's profit is the difference between the price agreed with the seller and the price the buyer pays.
- Wholesaling requires little capital because the wholesaler does not need to own the property.
- In this guide's example, a $150,000 contract sold to an investor for $170,000 nets a $20,000 profit.
- Some states require a real estate license, and disclosure rules apply, so wholesalers must follow local law.
Real estate wholesaling is an investing strategy in which a wholesaler puts a discounted property under contract and then sells that contract to an end buyer for a fee, without buying the property.
- The Real Estate Beginners Guide to Wholesaler Fee in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A wholesaler fee is the compensation a real estate wholesaler earns for arranging a deal between a seller and an end buyer, usually by assigning the purchase contract.
- The fee can be a fixed amount or a percentage of the transaction value and is typically paid at closing.
- In the example in this guide, a $150,000 contract assigned to a $160,000 buyer produces a $10,000 fee.
- Some jurisdictions require wholesalers to hold a real estate license, so rules on charging a fee vary.
- Wholesaler fees are taxed as income, so wholesalers should report them and plan accordingly.
A wholesaler fee, often called an assignment fee, is the amount a wholesaler keeps for finding a discounted property, putting it under contract and selling that contract to an investor.
- The Real Estate Beginners Guide to Water Rights in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Water rights are legal entitlements to use water from a specific source such as a river, stream or aquifer.
- Riparian rights, common in the eastern United States, are tied to owning land along a watercourse.
- Prior appropriation, predominant in the western United States, follows the principle of first in time, first in right.
- Secure water rights can raise land value, particularly in arid regions where water decides whether farming or development is viable.
- Water rights can often be bought, sold or leased, so buyers should verify them through deeds, permits and the local water authority before closing.
A water right is the legal permission to take and use a defined amount of water from a particular source, for a particular purpose, under rules set mainly by state law.
- The Real Estate Beginners Guide to Water Diversion in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Water diversion is the redirection of water from its natural course to another location, usually through dams, channels or pipelines.
- Diverting water generally requires a legal right to the water and a permit from the governing authority, so a property's water rights decide whether a diversion is lawful.
- Diversion projects carry high up-front infrastructure costs, environmental review and litigation risk.
- Reliable, lawful water access can raise a property's utility and value, especially in semi-arid regions.
- Buyers, investors and agents should confirm both the water source and the legal right to divert it before closing.
Water diversion is the human-made redirection of water from a river, stream, lake or aquifer to a different place for irrigation, industrial, municipal or development use.
- The Real Estate Beginners Guide to Warranty Deed in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A warranty deed transfers property ownership from the grantor (seller) to the grantee (buyer) and includes the grantor's guarantee that the title is clear and the grantor has the right to sell it.
- It typically offers the buyer more protection than a quitclaim deed, which makes no guarantees, or a special warranty deed, which covers only the grantor's period of ownership.
- If a title defect covered by the warranty surfaces, the buyer can look to the grantor, though the warranty is only as valuable as the grantor's ability to pay.
- A warranty deed usually includes the names of the grantor and grantee, a legal description of the property and the grantor's signature.
- Title insurance is still widely recommended with a warranty deed, and mortgage lenders typically require it.
A warranty deed is a deed in which the seller promises the buyer that the seller owns the property, has the right to sell it and that the title is free of undisclosed liens and claims.
- The Real Estate Beginners Guide to Walk-Through in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A walk-through is the buyer's final inspection of a property before closing, to verify that it is in the agreed-upon condition and that requested repairs were completed.
- It typically happens 24 to 48 hours before closing and usually lasts from 30 minutes to a couple of hours.
- The buyer should bring the contract, the inspection report and a repair checklist, and the buyer's agent usually attends.
- If the walk-through reveals problems, the buyer can negotiate repairs, compensation such as an escrow holdback, or a delay to closing.
- A walk-through is not a home inspection: it confirms the property's condition and the seller's promises, while an inspection evaluates the property's systems and structure.
A walk-through is the buyer's last look at a property, usually within a day or two before closing, to confirm that its condition matches the contract and that agreed repairs were made.
- The Real Estate Beginners Guide to Voluntary Alienation in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Voluntary alienation is the legal process by which a property owner willingly transfers ownership, such as by selling or gifting the property.
- It differs from involuntary alienation, such as foreclosure or eminent domain, because the owner initiates the transfer.
- A voluntary transfer is carried out with a deed, supported by a title search, and recorded with the appropriate government office to give public notice.
- Both parties must have legal capacity, meaning they are of sound mind and legal age.
- Selling or gifting property can have tax consequences, such as capital gains tax or gift tax, so owners should plan with a tax professional.
Voluntary alienation is the owner's deliberate transfer of real property to someone else, most commonly by sale or gift (and, in many treatments, by will), as opposed to a transfer forced by law or a creditor.
- The Real Estate Beginners Guide to Virtual Wholesaling in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Virtual wholesaling is a real estate investment strategy in which an investor finds, negotiates and assigns purchase contracts remotely, using digital tools instead of being physically present.
- The wholesaler contracts with the seller, then assigns the contract to an end buyer for a fee, so the wholesaler does not typically buy or renovate the property.
- Licensing and wholesaling rules vary by state, and some states may require a real estate license, so compliance must be checked market by market.
- Assignment fees are generally taxed as ordinary business income rather than capital gains; confirm the treatment with a tax professional.
- Virtual wholesaling lets investors work in many markets, but it requires research into unfamiliar areas and reliance on local title companies, inspectors and contractors.
Virtual wholesaling is wholesaling real estate remotely: finding a below-market property, getting it under contract, and assigning that contract to an end buyer for a fee, all without visiting the property in person.
- The Real Estate Beginners Guide to Vacation Rental By Owner (VRBO) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Vacation Rental By Owner (VRBO) is the practice of owners renting furnished homes, apartments or condominiums to travelers on a short-term basis, usually through online platforms such as Vrbo and Airbnb.
- Owners must follow local short-term rental rules, including zoning, licensing or permit requirements and, in some places, outright bans.
- Income from vacation rentals is taxable and may also be subject to local occupancy taxes.
- Owners should plan for platform fees, cleaning, utilities and insurance suited to short-term guests, and for income that swings with the season.
- A short-term rental is typically a stay of less than 30 days, which separates it from a standard long-term lease.
A vacation rental by owner is a furnished property that its owner rents directly to travelers for short stays, typically listed on an online platform such as Vrbo, an Expedia Group brand, or Airbnb.
- The Real Estate Beginners Guide to Vacancy Rate in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The vacancy rate is the percentage of units in a rental property or market that are unoccupied, calculated as vacant units divided by total units times 100.
- The U.S. Census Bureau Housing Vacancies and Homeownership survey reported a national rental vacancy rate of 7.6% in the third quarter of 2026, up from 7.1% in the third quarter of 2025.
- High vacancy rates can indicate oversupply or weak demand, while low rates can indicate strong demand.
- Vacancy rates vary by season, by market type and by geography, so investors compare a property against its own market.
- Investors use vacancy rates to estimate revenue, set rents and compare markets; lenders may consider them when assessing a property's risk.
The vacancy rate is the share of rental units that are empty at a given time, expressed as a percentage: vacant units divided by total units, times 100.
- The Real Estate Beginners Guide to Vacancy in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Vacancy is the state of a property or unit being unoccupied but available for rent or sale.
- The vacancy rate is the number of vacant units divided by total units, multiplied by 100.
- The U.S. Census Bureau Housing Vacancies and Homeownership survey reported a national rental vacancy rate of 7.6% in the third quarter of 2026, up from 7.1% in the third quarter of 2025, and a homeowner vacancy rate of 1.2%.
- Vacancy costs owners rental income and maintenance money, and vacant properties may face different insurance rates and tax treatment.
- High vacancy can signal oversupply or weak demand, which can lower rents and give buyers more negotiating power.
Vacancy is the condition of a rental unit or property that is not occupied and is available to rent or buy, and it is measured as a percentage called the vacancy rate.
- The Real Estate Beginners Guide to VA Guaranteed Loan in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A VA guaranteed loan is a mortgage for eligible veterans, active-duty service members and certain National Guard and Reserves members in which the Department of Veterans Affairs guarantees a portion of the loan.
- VA loans typically require no down payment and no private mortgage insurance, but most borrowers pay a one-time funding fee that can be financed into the loan.
- For a first-use purchase with less than 5% down, the VA funding fee is 2.15% of the loan amount, and 3.3% for subsequent use, according to the Department of Veterans Affairs.
- Borrowers must intend to occupy the home as a primary residence, although they can buy a property of up to four units, live in one unit and rent out the others.
- Existing VA borrowers can refinance through the Interest Rate Reduction Refinance Loan (IRRRL) or a Cash-Out Refinance.
A VA guaranteed loan is a home loan issued by a private lender and backed by the U.S. Department of Veterans Affairs, which lets eligible service members and veterans buy a primary residence with no down payment and no private mortgage insurance.
- The Real Estate Beginners Guide to Usury in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Usury is the practice of charging interest above the maximum rate the law allows, or an excessively high rate, on a loan.
- Usury limits are mostly set by individual states, so the maximum rate varies by jurisdiction, and certain lenders and loan types are exempt, including some federally chartered banks.
- Penalties for a usurious loan vary by state and can include fines, loan nullification or a requirement that the lender refund excess interest.
- Federal law can override state interest-rate caps for many first-lien residential mortgages, so state usury limits often matter most for private, seller-financed and some junior or business-purpose loans; the details are state-specific.
- Usury is narrower than predatory lending, which covers abusive loan terms beyond the interest rate.
Usury is lending money at an interest rate higher than the law permits, and usury laws exist to protect borrowers from exploitative rates.
- The Real Estate Beginners Guide to Use Of Premises in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A Use of Premises clause is the section of a lease that defines what activities the tenant may conduct on the leased property.
- The clause applies to residential, commercial and industrial leases and keeps the use aligned with the landlord's intentions and local zoning laws.
- Violating the clause can bring penalties, lease termination or legal action, and may affect insurance coverage.
- A tenant who wants a different or broader use, such as a bakery adding catering, typically needs the landlord's approval and a formal lease amendment.
- The clause is not zoning: zoning is government law, while the Use of Premises clause is a private contract term that must fit within zoning.
A Use of Premises clause is a lease provision that limits the tenant to specific, lawful activities on the rented property, such as residential living only or a particular type of business.
- The Real Estate Beginners Guide to USDA Loan in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A USDA loan is a zero-down-payment mortgage offered through the United States Department of Agriculture's Rural Development Guaranteed Housing Loan program.
- Eligibility depends on household income, which varies by region and household size, and on the property being in a USDA-eligible rural area.
- USDA loans are for primary residences only, so they are generally not available to investors buying rental properties.
- Borrowers pay a mortgage insurance-style guarantee cost, both upfront and annually, which is typically lower than FHA mortgage insurance premiums.
- USDA loans have no set loan limit; the approved amount depends on debt-to-income ratios and the property's appraised value.
A USDA loan is a government-guaranteed mortgage that lets eligible low- to moderate-income buyers purchase a primary residence in a designated rural or suburban area with no down payment.
- The Real Estate Beginners Guide to Unsecured Loan in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An unsecured loan is financing that requires no collateral: approval, rate and amount rest on the borrower's creditworthiness and income.
- Because the lender has no asset to claim, unsecured loans usually carry higher interest rates, shorter terms and lower borrowing limits than secured loans.
- In real estate, unsecured loans are less common for large purchases and are mainly used for smaller needs such as home renovations, emergency repairs and minor property improvements.
- The loan is not secured by the property, but defaulting can severely damage the borrower's credit score, and creditors may pursue other legal means to recover the debt.
- A home equity loan is not unsecured: it uses the borrower's home equity as collateral, while a personal loan is typically unsecured.
An unsecured loan is a loan made without the borrower pledging collateral such as a home or other asset, so the lender relies on the borrower's credit history and income to get repaid.
- The Real Estate Beginners Guide to Unlawful Detainer Law in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An unlawful detainer is the court action a landlord files to regain possession from a tenant who stays on the property after the lease ended or was terminated, including for a breach such as unpaid rent.
- The usual steps are a written notice, a court complaint, a summons, a hearing or trial, a judgment for possession and a writ of possession.
- Only the court's writ of possession, carried out by law enforcement, lets a landlord remove a tenant; self-help measures such as changing locks or shutting off utilities are generally unlawful.
- Notice periods, required notice content and timelines vary by state, and the process typically takes several weeks to a few months.
- Tenants can contest the case, and a tenant who wins stays in the property.
An unlawful detainer is a lawsuit that a landlord files to recover possession of rental property from a tenant who no longer has a legal right to remain.
- The Real Estate Beginners Guide to Universal Agent in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A universal agent is an agent authorized to perform any act the principal can lawfully delegate, which makes it the broadest type of agency.
- In practice the authority is usually created through a written power of attorney, and the agent owes the principal fiduciary duties of loyalty, confidentiality and full disclosure.
- A general agent has authority over a business or a range of matters, and a special agent has authority for a specific task or transaction, so both are narrower.
- A universal agency ends on revocation, completion of its purpose or the principal's death, and it also ends on the principal's incapacity unless the power of attorney is durable.
- Universal agency is uncommon in real estate because of the risk of misuse, so choosing a trustworthy agent is the central safeguard.
A universal agent is an agent with authority to act for the principal in all matters that the principal can personally perform and lawfully delegate.
- The Real Estate Beginners Guide to Unilateral Contract in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A unilateral contract is an agreement in which only one party makes a legally enforceable promise, and the other party accepts by performing an act rather than by promising anything back.
- The most common real estate example is an option contract, where the seller is bound to sell at a set price within a set period and the buyer is free to decide whether to buy.
- The option fee is usually the consideration that makes the seller's promise binding, and it is typically non-refundable if the option is not exercised.
- Once the buyer exercises the option, the parties generally move into an ordinary bilateral purchase contract.
- An open listing is another classic unilateral arrangement, because the owner promises a commission only to the broker who produces a buyer.
A unilateral contract is a contract in which one party promises to do something if the other party performs a specified act, and only the first party is legally obligated.
- The Real Estate Beginners Guide to Uniform Residential Loan Application (URLA) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The Uniform Residential Loan Application (URLA) is the standard mortgage application form, known as Fannie Mae Form 1003 and Freddie Mac Form 65.
- Freddie Mac states that the redesigned URLA was published in 2019 and became mandatory for all new loans to the GSEs on March 1, 2021.
- It collects the borrower's employment, income, assets, liabilities, the property and declarations that lenders use to underwrite the loan.
- Errors or omissions can delay or derail approval, and knowingly false statements on a mortgage application can carry serious legal penalties.
- The URLA is an application, not an approval: the lender's Loan Estimate and underwriting decision come afterward.
The Uniform Residential Loan Application (URLA) is the standardized form on which a borrower provides the financial and personal information a lender needs to underwrite a residential mortgage.
- The Real Estate Beginners Guide to Uniform Residential Landlord and Tenant Act (URLTA) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The Uniform Residential Landlord and Tenant Act (URLTA) is a model law first approved in 1972 by the National Conference of Commissioners on Uniform State Laws, now called the Uniform Law Commission.
- URLTA is not federal law and is not binding by itself: it applies only in states that enacted it, in whole or in part, and many states have their own landlord-tenant statutes.
- It covers lease terms, security deposits, landlord maintenance duties, eviction notices, tenant remedies and landlord rights.
- URLTA applies to residential rentals, not commercial leases or property sales.
- The Uniform Law Commission later approved a Revised Uniform Residential Landlord and Tenant Act in 2015, so check which version, if any, your state follows.
The Uniform Residential Landlord and Tenant Act (URLTA) is a model state law that sets standard rules for residential rental agreements, covering the rights and duties of both landlords and tenants.
- The Real Estate Beginners Guide to Uniform Commercial Code (UCC) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The Uniform Commercial Code (UCC) is a set of model commercial laws that each state enacts as its own statute, which is why state versions can differ slightly.
- UCC Article 9 governs security interests in personal property and fixtures, and lenders perfect them by filing a UCC-1 financing statement.
- Land and buildings are secured by a mortgage or deed of trust recorded in county land records, not by a UCC-1 filing.
- The UCC matters in real estate for equipment, furniture and fixtures, for pledges of ownership interests in an LLC, and for sales of goods that come with a property.
- Foreclosure on real property follows state real property law, while the UCC governs how lenders dispose of personal property collateral.
The Uniform Commercial Code (UCC) is a model set of laws, drafted by the Uniform Law Commission and the American Law Institute and enacted by the states, that standardizes commercial transactions such as sales of goods, negotiable instruments and secured lending against personal property.
- The Real Estate Beginners Guide to Under Contract in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Under contract means a buyer and seller have signed a purchase agreement on the terms of a sale, and the property is moving toward closing subject to contingencies such as inspection, appraisal and financing.
- An under-contract property is typically off the market to new offers unless the contract includes a kick-out clause.
- A buyer who backs out without a valid contingency may lose the earnest money deposit.
- Typical contracts run about 30 to 60 days from acceptance to closing, depending on the terms.
- Under contract, contingent and pending are used differently from one MLS to another, so check the local definitions.
Under contract is the status of a property after the buyer and seller have signed a binding purchase agreement but before the sale has closed.
- The Real Estate Beginners Guide to Umbrella Policy in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- An umbrella policy is extra liability insurance that pays after the limits of an underlying homeowners, auto or landlord liability policy are used up.
- Umbrella policies typically start at $1 million of coverage, and insurers often require minimum liability limits on the underlying policies first.
- Umbrella coverage can include legal defense costs and some claims such as libel and slander, but exclusions apply, and many personal umbrellas exclude business-related claims.
- Landlords and investors should confirm in writing whether their rental properties are covered, because coverage for rentals and business activity varies by insurer and policy.
- An umbrella policy does not change whether you are legally liable; it only pays covered claims after the underlying limits are exhausted.
An umbrella policy is a supplemental liability insurance policy that sits on top of your primary insurance and pays covered claims that exceed the primary limits.
- The Real Estate Beginners Guide to U.S. Department of Housing and Urban Development (HUD) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The U.S. Department of Housing and Urban Development (HUD) is the federal cabinet department responsible for national housing policy, community development and fair housing enforcement.
- President Lyndon B. Johnson signed the legislation establishing HUD on September 9, 1965, according to the LBJ Presidential Library, as part of the Great Society program.
- HUD oversees FHA-insured mortgages, Community Development Block Grants, public housing and Housing Choice Vouchers, homeless assistance programs and Fair Housing Act enforcement.
- The Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, familial status or disability.
- HUD includes the Federal Housing Administration (FHA) and Ginnie Mae, which are separate from Fannie Mae and Freddie Mac.
The U.S. Department of Housing and Urban Development (HUD) is the federal agency that runs national housing programs, funds community development and enforces the Fair Housing Act.
- The Real Estate Beginners Guide to Turnkey Investing in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- Turnkey investing is buying a rental property that has already been renovated and set up with professional property management, often with a tenant in place, so it can produce rent from the day of closing.
- Investors typically pay a premium for the renovation and management services bundled into the price.
- Turnkey suits remote and time-limited investors, such as a New York City investor buying in Memphis, Tennessee.
- Results depend on the turnkey provider's reliability, so due diligence on the provider and the property is the main protection.
- Profit is not guaranteed: it depends on market conditions, vacancy, expenses and management quality.
Turnkey investing is the purchase of a fully renovated, professionally managed rental property that is ready to generate income immediately.
- The Real Estate Beginners Guide to Truth in Lending Act (TILA) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- The Truth in Lending Act (TILA) is a federal law enacted in 1968 as part of the Consumer Credit Protection Act that requires lenders to disclose key credit terms and costs.
- Required disclosures include the annual percentage rate (APR), finance charges, amount financed, and the total of payments.
- TILA gives borrowers a right of rescission on certain loans secured by their principal dwelling, such as refinances and home equity lines of credit (HELOCs), but the right does not apply to a loan to buy a home.
- TILA also sets standards for loan advertising and requires additional disclosures for adjustable-rate mortgages (ARMs).
- TILA is written for consumer credit, and credit made primarily for a business or commercial purpose is generally outside it.
The Truth in Lending Act (TILA) is a federal consumer protection law that requires lenders to give borrowers clear, standardized disclosures of a loan's cost and terms so they can compare offers.
- The Real Estate Beginners Guide to Trustee Sale in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A trustee sale is a public auction of a foreclosed property, conducted by a trustee acting on behalf of the lien holder, typically a mortgage lender.
- A trustee sale is the final step of a non-judicial foreclosure, which happens outside the courtroom and is generally quicker than judicial foreclosure.
- The process starts with a notice of default and a notice of sale that gives the date, time, and location of the auction.
- The winning bidder receives a trustee's deed, and properties are sold as-is, so buyers must research title and any senior liens or encumbrances before bidding.
- Redemption rights and deficiency judgments depend on state law, so buyers and borrowers should check the rules where the property sits.
A trustee sale is the public auction at the end of a non-judicial foreclosure, in which a trustee sells a property to the highest bidder after the borrower defaults on a loan secured by a deed of trust.
- The Real Estate Beginners Guide to Trustee in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A trustee is an individual or institution appointed to manage property or assets held in a trust, including real estate.
- Trustees have a fiduciary duty to act in the best interest of the beneficiaries and must follow the terms of the trust agreement.
- A trustee can sell trust-owned property if the trust agreement authorizes it and the sale serves the beneficiaries.
- Trustees can be held liable for mismanaging trust assets, and they can be removed or sued for breach of fiduciary duty.
- In a deed of trust, the trustee is a neutral third party, a different role from the trustee of a family trust.
A trustee is the person or institution that holds legal title to trust property and manages it for the trust's beneficiaries, under a legal duty to follow the trust agreement and act in their best interest.
- The Real Estate Beginners Guide to Trust in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A trust is a fiduciary arrangement in which a trustee holds and manages assets for the benefit of a beneficiary.
- Real estate placed in a properly funded trust can pass to beneficiaries without probate, the sometimes lengthy and costly court-supervised process.
- Trusts are generally private, unlike wills that go through probate.
- A revocable trust can be changed or revoked by the grantor during their lifetime, while an irrevocable trust typically cannot.
- Establishing a trust requires legal expertise to meet state law requirements, and the trustee must follow fiduciary duties.
A trust is a legal arrangement in which a grantor transfers property to a trustee, who holds and manages it for the benefit of one or more beneficiaries under the terms of a trust agreement.
- The Real Estate Beginners Guide to Triplex in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A triplex is a residential building divided into three distinct units, each typically with its own entrance.
- An owner can live in one unit and rent out the other two, which can cover mortgage costs or generate additional income.
- Local zoning laws dictate where triplexes can be built, so availability and location vary.
- Financing a triplex may differ from a single-family home and often requires higher down payments and interest rates.
- Triplex rental income is taxable, while owners may deduct expenses related to property management and maintenance.
A triplex is a residential building with three separate living units under one roof, a type of multi-family property that sits between a duplex (two units) and a quadplex (four units).
- The Real Estate Beginners Guide to Triple Net Lease (NNN) in 2026 Nov 6, 2026 Austin Beveridge Read article →
Key Takeaways
- A Triple Net Lease (NNN) is a lease where the tenant pays all the operating expenses of the property, typically real estate taxes, building insurance, and property maintenance, in addition to rent.
- NNN leases typically run long term, often 10 to 25 years, which gives landlords predictable cash flow.
- Landlords in NNN leases carry lower management costs and expense risk, and passive investors value that low-risk, hands-off income.
- Tenant financial strength is the main risk, because a tenant that cannot cover the expenses can let the property's upkeep slip.
- NNN leases are widely used for retail, office, and industrial properties, and they often include rent escalation clauses.
A Triple Net Lease (NNN) is a commercial lease in which the tenant pays property taxes, building insurance, and maintenance in addition to base rent, so the landlord collects close to the rent as net income.