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What is meant by "fiduciary" duty?
"Fiduciary" duty is part of the legal obligation held in the client – broker relationship. Brokers owe a "fiduciary" duty to their clients. This translates into the broker going beyond and above client’s expectations in providing details and answers addressing concerns and questions that might be raised.
What are finance charges?
When purchasing or refinancing a real property, borrowers will be faced with varies charges to cover costs arising from the lending process. On average, borrowers are faced with $5000 in charges. The amount is added to the total loan amount resulting in an increase in monthly payments of about $2.00. Borrowers can pay the fees upfront if they choose.
Can buying a home help lower my taxes?
In most cases, buying a home will help lower your taxes. Depending on your financial condition, you can claim almost all of your mortgage interest as tax deduction. There are a number of factors, such as size of household and area of residence. In addition, as a homeowner, you will enjoy special tax allowances during rough economy. For example, in 2009, president Obama directed the IRS to issue $8000 tax cut bonus to new homeowners.
How can an open escrow be cancelled?
Escrows are formed as a result an agreement to exchange an object for consideration. In real estate transactions, the object is real property. Both sides sign a purchase agreement outlining steps and timeline to be taken by each party. Most real property contracts include provisions to protect the rights of both parties, giving any party the right to cancel escrow at anytime but with a cost. A “liquidated damage clause” will provide remedy in such a case.
How can real property produce income?
There are a number of ways for real property to produce income. First, real property can be rented out as a whole unit. Second, real property can be rented out in separate units with shared amenities (very common in college towns). Third, real property can be used to harness equity.
Are agents bound by certain guidelines?
Real estate agents are bounded by local, state and federal law. Real estate licensing guidelines are part of state law. Real property contracts are governed by the Uniform Commercial Code (U.C.C.). In addition, real estate agents are bounded by their local association rules and ethics guidelines. Each association developed its guidelines to address issues arising from local real estate practices.
