The last but not the least deadly mistake people commit when buying and/or investing in real property is Deadly Mistake No. 7. This particular deadly mistake is actually committed by the majority of the people especially those buying or paying for real property in installments. WHY? Because of ignorance in such matters. Period!
And this is the very reason why people MUST deliberately take their time to educate themselves in such matters to avoid falling prey to such blunders.
One does not need to posses a PHD in such matters in order to know these things but just some basic knowledge and understanding. That's all. WHY? Because such knowledge and understanding can save one a hell lot of money and infinite headaches!
And this is the very reason why people MUST deliberately take their time to educate themselves in such matters to avoid falling prey to such blunders.
One does not need to posses a PHD in such matters in order to know these things but just some basic knowledge and understanding. That's all. WHY? Because such knowledge and understanding can save one a hell lot of money and infinite headaches!
WHAT THEN EXACTLY IS THIS VERY DEADLY MISTAKE NO. 7 I'M TALKING ABOUT?
Well, dear blog reader and real estate investor, it is simply this :
NOT PLACING THE DEED OF RE-CONVEYANCE IN ESCROW!
"WHAT EXACTLY THEN IS MEANT BY THIS", YOU MIGHT ASK?
Well, in order to understand what is meant by this very deadly mistake, we need to first of all look at the words used in the particular mistake mentioned above.
The first word we need to look at and understand is the word "DEED". This word in real estate circles means a document that transfers ownership of real property.
The second word is the word "RE-CONVEYANCE". This word means to re-transfer ownership of real property from one person (entity) to another.
And the last word we need to look at and understand is the word "ESCROW". This word means the depositing of funds and other relevant real estate documents with a neutral third party together with instructions on how to conduct the closing of the real estate deal especially where the buyer is paying by way of installments. This neutral third party (a person or corporate entity) that holds these funds and documents is known as an Escrow Agent or a Conveyance r as in the case of our local Zambian setup. He (Escrow Agent or Conveyance r) is normally a disinterested third party in the deal at hand who prepares and keeps these relevant documents along with the monies deposited by the buyer and spearheads the buying, selling and transfer of the real property in question until the whole deal is concluded. This escrow agent can be a real estate consultant, the department of a financial institution, a legal person such as a lawyer, a title research company, or some other organization established for that purpose and which happens to posses expertise in real estate document preparation. The escrow agent's neutral nature guarantees that all your interests as a buyer as well as as a seller are taken care of without any favoritism whatsoever!
Therefore, it's ALWAYS a wise idea to engage the services of an escrow agent or Conveyance r even when you're buying real property from your father-in-law!
Therefore, it's ALWAYS a wise idea to engage the services of an escrow agent or Conveyance r even when you're buying real property from your father-in-law!
Thus deadly mistake no. 7 which is : NOT PLACING THE DEED OF RE-CONVEYANCE IN ESCROW simply means - a legal instrument or document written and signed by the seller that releases all lien interest in the subject property being sold and re-transfers a seller's property from him/her to the buyer upon completion of the full payment of a previously agreed upon valuable consideration and normally should be placed in escrow but happens NOT to be done so. This normally happens due to the ignorance of the buyer.
And if you're a seller, make sure also to make the buyer sign what is known as a "QUITCLAIM DEED" and have him/her place it in escrow as well to protect your interests. A Quitclaim Deed is a legal instrument or document written and signed by the buyer for the seller so that should the buyer breach the real estate purchase contract, then the buyer stands to indemnify the seller for loss of time, money and indeed anything else related to the deal at hand. It is also normally placed in escrow as security to compel the buyer abide by the terms and conditions of deal so that in the event that the buyer fails to honor his obligations under the contract, then the seller shall be free to take back his property together with any other deposit monies the buyer could have made!
This therefore concludes our series of the 7 deadly mistakes people make when buying real property. Hope this has been of great help to you.
Just in case you may not have read the previous 6 deadly mistakes, well, read about them HERE starting with the very first one HERE.
Recommended further reading on buying real property in the Republic of Zambia as well as the procedures and requirements to be followed and adhered to, is found HERE! Please check it out and read it for Yourself. You'll be happy that You did!!
I love to hear your comments. Both positive and negative ones are all welcome. Besides you're also totally FREE to share this very blog post with your friends and other people you know by hitting the "LIKE" or "SHARE" button below.
Therefore, go right ahead and drop a comment below as well as hitting the "LIKE" or "SHARE" button.
P.S: Looking for Real Estate Property to Buy, Sell, or Rent? Then click on the highlighted words right in this very sentence.
This therefore concludes our series of the 7 deadly mistakes people make when buying real property. Hope this has been of great help to you.
Just in case you may not have read the previous 6 deadly mistakes, well, read about them HERE starting with the very first one HERE.
Recommended further reading on buying real property in the Republic of Zambia as well as the procedures and requirements to be followed and adhered to, is found HERE! Please check it out and read it for Yourself. You'll be happy that You did!!
I love to hear your comments. Both positive and negative ones are all welcome. Besides you're also totally FREE to share this very blog post with your friends and other people you know by hitting the "LIKE" or "SHARE" button below.
Therefore, go right ahead and drop a comment below as well as hitting the "LIKE" or "SHARE" button.
P.S: Looking for Real Estate Property to Buy, Sell, or Rent? Then click on the highlighted words right in this very sentence.
