I hope you have found the past two months’ newsletters helpful. We complete our series on some common real estate terminology, either as a buyer or a seller. We kick it off with Letter Q.

Quitclaim Deed 
This type of deed releases a person’s interest in a property without stating the nature of the person’s interest or rights, and with no warranties of that person’s interest or rights in the property. A reason you might do something like this would be to add your spouse to a deed or transfer property quickly to a family member. Trust between the parties is necessary when doing a deed like this. Essentially, the deed says I transfer whatever rights I may have in their property, even if it is nothing.  

Reverse Mortgage
This is a loan that allows a borrower to relinquish home equity in exchange for money. The title remains in the borrower’s name. A Home Equity Conversion Mortgage (HECM), is a type of loan exclusively for homeowners 62 and older. In New York, these homeowners need to secure their own attorney as part of the process. It is known as a “reverse” because no payments are due until you either sell the house, no longer reside in the home or pass away. The interest is negatively amortized to be paid back when the loan comes due. It is a good way for a senior to continue to reside in their home, pay their taxes or have money for upkeep.

Security Interest 
A borrower gives a lender a security interest in personal property/assets as collateral. Best example of this is when purchasing a co-op. You are actually buying shares of stock, not real estate. So, the loan is secured with a security interest (often called a UCC-1.)  

Title Insurance
The owner’s title policy (often called a “fee” policy) insures a buyer’s interest in the property as the owner from the date purchased and back. It is not required, but certainly I always recommend that a purchaser obtain it, as it can protect buyers against open liens from prior owners. And when you obtain a mortgage, the lender will require a “loan” policy to protect its interest in the property, as well.  

Underwriting 
This is a process by the bank to determine whether a buyer qualifies for a loan. The loan is in “underwriting” as the documents are being reviewed according to guidelines. Additional documents might be needed before a commitment and a clear to close can occur. 

VA loan
A VA loan is a government-backed mortgage for Veterans, service members and surviving spouses. These loans offer competitive interest rates and terms. No down payment is needed and there is no PMI requirement.

Walk-Through Inspection
This is the last chance to make sure everything in the house is in good working order and the walk-through is typically scheduled the day of, or the day prior to, the closing. Buyers should check all of the appliances, make sure there is no plumbing or roof leaks and ensure the electrical works. Remember, once you take possession, the house is your responsibility.   

X
Other than a mark you make on a contract so someone knows where to sign, X didn’t have any terms. If you think of one, let me know!  

Yellowstone injunction 
A Yellowstone injunction is a New York Supreme Court proceeding initiated by the tenant when the landlord seeks to terminate the lease because of a claimed default by the tenant. Generally, it is used in commercial landlord/tenant disputes.  

Zoning
A town is generally zoned into residential, commercial, industrial and mixed-use areas (there are others, as well). If someone wants to build something that is not “zoned” for that area, a zoning variance is needed. This provides the property owner with legal permission to do what they want on the land. It’s simply a request to deviate from current zoning requirements.

I hope you enjoyed this series and gained some valuable information in the process.