Condominium : A system of ownership of individual units in a multi-unit structure, combined with joint ownership of commonly used property (sidewalks, hallways, stairs, etc.).
Simply stated…You own your unit and a percentage of the common areas. An HOA (Home Owners Association) fee is usually collected monthly to cover maintenance costs of the common areas as well as the exterior building. Additional costs, such as all utilities, may also be included. Before purchasing a condo, be sure you understand all costs included in the HOA fees. HOA fees can add up to several hundred dollars a month!
Quitclaim Deed: A deed that conveys only the grantor’s right or interest in real estate, without stating the nature of the rights and with no warranties of ownership.
Simply stated…If you know the ownership and just need to add or remove a legal owner, a quitclaim deed is an easy way to do so. Commonly seen in a divorce or marriage, but also if one partner obtains the mortgage in their name and wishes to add the other partner to the deed. Being added or removed does not relieve you or make you responsible for the mortgage. This is a separate document.
Earnest Money : A deposit made by a purchaser of real estate to evidence good faith.
Simply stated…An amount of money offered with the purchase agreement to show the sellers that your are serious about purchasing their home. A homeowner will want to know this before agreeing to take their home off the market. Typically in Albuquerque, earnest money can range from $1,000-$1500 for less than $250,000 and $3,000-$5000–up to $500,000. This is always negotioable, but needs to be reasonable to the seller. Earnest money is generally held in escrow with a title company in Albuquerque and is credited to the buyer at closing. .
Escrow: An agreement between two or more parties providing that certain instruments or property be placed with a third party for safekeeping, pending the fulfillment or performance of a specific act or condition.
Simply stated…This is most typically seen when a buyer writes a check for earnest money as part of a purchase agreement. In Albuquerque, a title company usually acts as the escrow agent. The check is deposited with them after the offer is accepted. They will then apply the amount of the check as a credit to the buyer at closing or, if the contract is terminated, the title company will disburse per the instructions in the contract and only with the signature of all parties involved.
Deed: A written instrument, which when properly executed and delivered, conveys title to real property.
Simply stated…A piece of paper showing new ownership. In order to be valid, the deed must have:
• the buyers and sellers names
• the sellers signatures
• a complete legal description.
• been notarized.
The deed should be filed with the county to protect ownership. If using a title company, they will record the deed when the loan funds.
