Real estate anywhere is a complicated venture. Having professionals in place to help you along the way is a great way to get the job done right, and in a timely fashion. If you are new to real estate there will be some vocabulary and terms that are new. Here are some questions and answers to get you started. Your REALTOR® will be able to help with any additional questions you may have along the way.
Q. We want a contingency for home inspection and it being satisfactory?
A. In TN we use The Tennessee Association of REALTOR® forms created for us in Nashville by a panel of attorneys and brokers from around the state. On page 5 and 6 the inspection portion of the contract is spelled out for both buyer and seller. It starts at line 239 and ends at line 302
Q. What is PUD (Planned Unit Development)?
A. A PUD is defined as a mixed-use residential development of
single-family dwellings in conjunction with rental, condominium,
cooperative or town house properties. A residential development
should be processed as a PUD if it has these minimum
- a homeowner association that holds either title in fee or a
lease of prescribed length on the common area
- mandatory membership of all unit owners (or units) in the
- the right of all unit owners to participate by vote in the
operation of the association
- lien supported assessment of the members to meet the
association's budgeted operating costs (special assessments
may be handled differently)
Q. What is a contingency?
A. A future event or circumstance that is possible but cannot be predicted with certainty. A typical contingency in real estate are the inspections, appraisal, financing, or maybe the sale of another house.
Q. What are closing costs and how much will they be?
A. Closing costs are expenses over and above the price of the property in a real estate transaction. Costs incurred include loan origination fees, discount points, appraisal fees, title searches, title insurance, surveys, taxes, deed-recording fees and credit report charges. Home buyers will pay between about 2 to 5 percent of the purchase price of their home in closing fees. **if your home cost $150,000, you might pay between $3,000 and $7,500 in closing costs.
Q. After viewing a house, it clearly has 4 bedrooms, but it is listed as a 2 bedroom, WHY?
A. Great Smoky Mountains Association of REALTORS® advertises only what the county has issued a septic permit for. Therefor, if the request for the permit comes back with 2 bedrooms then the listing will represent this accordingly. There are however a lot of "what if's" What if there is no septic permit on file? Then the seller has the right to advertise as he wishes, with the number of bedrooms, he/she may have. This can be a complicated question, all concerns should be directed to Environmental Health Dept of Sevier County 865-429-1766
Q. What is title insurance and do I need it?
A. Title insurance is an insurance policy that covers the loss of ownership interest in a property due to legal defects and is required if the property is under mortgage. The most common type of title insurance is a lender's title insurance, which is paid for by the borrower but protects only the lender. Any question about this or other insurances should be directed to either your lender or the title company for additional guidance.