Real Estate

1. Disclosures and Legal Timelines

• TILA-RESPA Integrated Disclosure (TRID): Often referred to as the "Know Before You Owe" rule.

  • Loan Estimate: Must be issued within 3 business days of the loan application.

  • Closing Disclosure: Must be provided to the borrower at least 3 business days prior to the closing date.

• Attorney Review Period: A mandatory 3-business-day period during which the contract can be cancelled or modified.

• Attorney General Memorandum on Discrimination: This document must be provided to the homeowner at the time any residential property is listed.

2. Unit 5: Real Property Ownership and the Bundle of Rights

• The Bundle of Rights: Often used to describe the primary legal rights of ownership:

  • Possession: The right to occupy the property.

  • Use: The right to employ the property for any legal purpose.

  • Enjoyment: The right to use the property without interference.

  • Exclusion: The right to keep others from entering or using the property.

  • Disposition or Alienation: The right to sell, lease, or give away the property.

• Transfers of Ownership:

  • Devise: To leave real property to an heir by a will.

  • Real Property: Ownership is transferred using a Deed.

  • Personal Property: Ownership is transferred using a Bill of Sale.

3. Estates and Encumbrances

• Fee Simple Estate: The most complete form of real estate ownership available.

• Encumbrance: A liability, charge, or lien attached to real estate that may affect the title but does not necessarily prevent transfer.

• Property Lien: A specific financial claim asserted against a property.

1. Disclosures and Legal Timelines

• TILA-RESPA Integrated Disclosure (TRID): Often referred to as the "Know Before You Owe" rule. It integrates disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) to help consumers understand their options.

• Loan Estimate (LE): Must be provided to the borrower within 3 business days of the loan application. It outlines the estimated interest rate, monthly payment, and total closing costs for the loan.

• Closing Disclosure (CD): Must be provided to the borrower at least 3 business days prior to the consummation of the loan (closing). This cooling-off period allows the borrower to compare final costs with the initial Loan Estimate.

• The Mandatory Disclosure Timeline:

  • Application: The trigger for providing the Loan Estimate within 3 business days.

  • Wait Period: A mandatory 3-business-day waiting period exists between the delivery of the Closing Disclosure and the actual signing of papers.

• Attorney Review Period: A mandatory 3-business-day period in many jurisdictions (such as NJ) during which the buyer's or seller's attorney can review the contract. During this time, they have the right to cancel or propose modifications to the agreement. The countdown typically begins after both parties have received a fully executed copy of the contract.

• Attorney General Memorandum on Discrimination: This document must be provided to the homeowner at the time any residential property is listed to ensure compliance with fair housing regulations.

2. Unit 5: Real Property Ownership and the Bundle of Rights

• The Bundle of Rights: Often used to describe the primary legal rights of ownership:

  • Possession: The right to occupy the property.

  • Use: The right to employ the property for any legal purpose.

  • Enjoyment: The right to use the property without interference.

  • Exclusion: The right to keep others from entering or using the property.

  • Disposition or Alienation: The right to sell, lease, or give away the property.

• Transfers of Ownership:

  • Devise: To leave real property to an heir by a will.

  • Real Property: Ownership is transferred using a Deed.

  • Personal Property: Ownership is transferred using a Bill of Sale.

3. Estates and Encumbrances

• Fee Simple Estate: The most complete form of real estate ownership available, representing absolute ownership.

• Encumbrance: A liability, charge, or lien attached to real estate that may affect the title but does not necessarily prevent the transfer of ownership.

• Property Lien: A specific financial claim asserted against a property as security for a debt.