Deed Of Trust: What Does It Mean?

A deed of trust is a legal instrument that serves as an agreement between a lender and a borrower to place a piece of property into the hands of a third party as a trustee. The third party holds the property until the borrower can pay it off, but the borrow retains all of the responsibilities for maintaining the property. The borrow also holds the title to the property during this time.

This arrangement means that the trustee must be prepared to sell the property in the event that the borrower does not meet their debt obligations on it. It is not a common arrangement, but it is one that may still be explored. It is the responsibility of the trustee to remain neutral in everything related to this property, and they must view what they do as favoring the borrower nor the lender in particular.

Comparables: The Best Way To Understand The Value Of Your Property

A comparable is the best way for a real estate owner to understand where the value of his or her real estate stands. The short hand way to understand a comparable is to understand it as a way to value real estate against other real estate in the area. A piece of property that is relatively in the same frame of value as another is a great way to get a ballpark idea of the value of a property.

It is always important to understand that a comparable should match up with your piece of property as closely as possible. Slight differences can make a big difference in one direction or another. Properties in the same neighborhood with nearly identical space and amenities are the best comparables out there.

Certificate Of Occupancy: A Legal Requirement For Many Buildings

A certificate of occupancy is a very important document from a local government body that states that the building that it is on is in compliance with all related building codes. It verifies that the building is stable enough for human occupation.

This legal document will be required when a new building is constructed, when a building is being used for a dramatically different purpose than what it was intentionally designed for, or when the occupancy of the building changes for commercial or industrial buildings.

Proof can be required in certain circumstances to demonstrate that the building can and should be used as it is under current conditions. Some localities require certain fees or taxes be paid to obtain the certificate of occupancy, so this is something that should be reviewed when going through this process as well.