Equitable Conversion is a legal doctrine in certain states where, under a contract of sale, buyers and sellers are treated as though closing has already occurred. The seller in possession remains obligated to maintain the property until formal transfer.
An unintentional error made in preparing a contract; may be corrected by mutual consent of all parties without voiding the contract.
An occupancy agreement, limited, allows a prospective buyer to obtain possession of a property under a temporary arrangement, typically before the official closing of the sale.
Preclosing is a process conducted prior to the final closing of a real estate transaction whereby instruments are prepared and signed by some or all parties involved in the contract. This process is especially useful in complex transactions involving multiple parties or arrangements.
Sale pending is a term used in real estate to describe a property for which a contract has been signed but the transaction has not yet closed. These transactions are not officially counted as sales until the closing process is completed.
A title company plays a crucial role in the real estate transaction process by examining titles, holding earnest money, and issuing title insurance. Their services ensure that the title to a property is free from any liens or disputes before the transaction is finalized.
The Uniform Settlement Statement, otherwise known as the HUD-1 Form, is mandated by the Real Estate Settlement Procedures Act (RESPA) for federally related mortgages. This document contains crucial details about the closing, outlining all charges and funds involved in a real estate transaction.
