E is for Earnest Money -- Real Estate Dictionary
Colorado Real Estate Terms -- Use this glossary to make yourself more prepared
Why do I need to put down Earnest Money when I'm making an offer on a house? In Colorado, Earnest Money is partially used to show your intention to purchase the property; it is consideration for the contract. You don't have to put down Earnest Money, as you can also sign some type of promissory note.
I read in the paper that some land was going to be taken by Eminent Domain by the state for a highway, what does this mean? Eminent Domain is the right of the government to take private property for public use; with just compensation to the owner.
My Realtor said that I should get a survey on the house I'm buying, as the neighbor's tall stucco fence may be encroaching on my land. What is an encroachment? Encroachments are classified as unauthorized invasion or intrusion of real property onto another's property. They often incur as the result of poor planning; vs. deliberate intent.
I just got turned down for a loan. Doesn't the bank have to give me a reason? Yes, according to the Equal Credit Opportunity Act (EOCA) passed in 1974; lenders must provide the reasons for denying credit to applicants.
Does my Realtor carry E & O Insurance? Yes, in most states, Realtors are required to carry Errors and Omissions Insurance, which covers liabilities for errors, mistakes and negligence; but it does not cover fraudulent behavior.
Why is my Earnest Money held in Escrow, what does this mean? Escrow refers to a process of holding money until the satisfaction of the terms and conditions of the contract have been achieved.
Are Realtors held to some type of Ethics? Yes, Realtors subscribe to a Code of Ethics and are expected to abide by the Code.
Should I get Extended Coverage on my Title Insurance; what does it cover? Extended Coverage typically covers things that aren't in public records; such as mechanics liens, easement, tax liens.
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