Land and anything permanent or immovable on land is special property {real property} {real estate, property}. Real property includes houses, buildings, swimming pools, and trees. Other property is movable or personal {personal property, not real}.
People can have right {appointment power} {power of appointment}| to choose someone to receive property.
People can live in apartments, condominiums, townhouses, and single-family houses {housing}. Buy or rent minimum-size house needed. Single persons may need one bedroom, one bathroom, one-car garage, and small kitchen. Families may need three bedrooms, two bathrooms, two-car garage, and kitchen with storage. Preferences can include floor plan, lot size, schools, supermarkets, businesses, highways, distance from work, maintenance required, town part, children age and number, neighborhood, and utilities. Think about noise level, pollution, traffic patterns, property value trends, tax trends, zoning laws, construction plans, and street plan changes.
buying or renting
People can buy or rent. If planning to stay in house for at least five years, it is better to buy than to rent.
To hold for buying or renting, people typically pay a small percentage of price or monthly rent {deposit}.
Maintaining homes {maintenance, house} {home maintenance} can check electrical, plumbing, and fastening problem areas.
checks
Check for corrosion, moisture, and mildew. Check roof, flashing, and other locations for cracks, loose pieces, and wear. Check all vents. Check basements, crawl spaces, foundation walls and floors, and concrete and masonry for cracks, heaving, and wear. Check overhang and beam ends {fascia, house}. Check under overhangs and beams {soffit, home}. Check chimneys for loose mortar. Check windows for loose sealants {caulking}. Check cement, sand, and water filler {grout}. Check putty {glazing}. Check fasteners. Check tile, window glass, and screens. Check weather-stripping. Check electrical wires and appliances for bad insulation, exposed wires, and wear.
clean
Keep plant growth away from surfaces. Clear all gutters and downspouts. Clean septic tank every two years. Change furnace filter every three months.
test
Check well water every year. Have professional heater inspection every year. Test circuit breakers and bathroom ground-fault-interrupter switches every six months. Test smoke alarms every six months.
painting
Check paint for wear and cracks. Paint peeling or blistering indicates poor insulation. Paint chalking is good. Homes need paint every three to seven years.
Property defects that were property owner's duty to repair can cause property owner to be liable {liability, home} for injuries to tenants or guests. Such defects depend on property type and lease terms. If owner did not know defects, property owner is not liable. States can require property owners to keep property in compliance with local building codes. Property owners are responsible for public areas, but leases can exclude liability for injuries in public areas.
Property ownership or possession can have a time limit {terminable interest}.
Buyers can insist on professional inspections {inspection, house} {house inspection} {home inspection} for damage and termites. Home inspection includes checking all functional and structural components.
structure type
Homes have structure types such as condominium or single-family home, level number such as two stories, lot type such as flat or sloping, age, and view such as on street or on common area.
exterior
Exteriors can have asphalt or concrete driveways and sidewalks, wood or metal fences and gates, fiberboard or aluminum wall coverings {siding, house}, wood trim, wood or metal window frames, waterproof electrical outlets and lights, metal or plastic troughs for water {gutter} {downspout}, sprinklers, faucets with threads for screwing on hoses {hose bib}, bells or chimes, skylights, chimneys, drainage slope, gas meter, water meter, electric meter, and foundation.
roof
House tops {roof} can have composition shingle, brick shingle, or metal. Roofs can be flat or sloped. Deflectors {flashing, roof} are around vents and pipes.
attic
The space under roof and above highest ceiling has wood or steel structure {framing} {truss, roof structure} to hold roof, boards across frame {sheathing, frame} such as oriented-strand boards or skip sheathing, loose or fixed fiberglass insulation, vents in gables or eaves, electrical wiring, and ducts.
patio
Balcony or patio can have roof, waterproof electrical outlets and lights, wood decking or concrete slab, and railings.
garage
Carport or garage can attach to house or not and can have metal or wood roof, walls, asphalt or concrete slab, windows, doors, waterproof electrical outlets and lights, and storage areas.
heating
Heating uses gas or oil furnaces or electricity {strip heater} {blower}. Gas heaters can have an electronic ignition system. Heaters can have a thermostat. Heat can be convection or forced air with vents and ducts. Furnaces have reusable or throwaway filters.
plumbing
Plumbing includes copper or plastic inlet pipes, iron or plastic outlet pipes, shutoff valve, faucets, sinks, disposals, fiberglass or ceramic bathtubs, shower curtains or doors, toilets, clothes washers, and dishwashers. Water heaters can be gas or electric and have a temperature relief valve, discharge line, cold-water shutoff valve, safety strap, and vent. Mineral deposits make popping sound when water is heating.
electrical
Electrical supply is 50 to 100 amperes at 110 or 220 volts. A main panel can have circuit breakers or fuses and a shutoff switch. Wiring can be copper or aluminum. Wiring has ground. Stove, oven, microwave oven, trash compactor, and vent fans can be electric.
smoke
Smoke detectors test for ions and particles. A sprinkler system can run through ceiling.
interior
Interior features are vinyl, wood, or carpeted floors, plaster or wood ceilings, plaster or wood or tile walls, single-pane or double-pane windows, and wood or metal doors. Interiors can have cabinets, shelves, laminated or stone countertops, hoods, and electrical outlets and lights.
Bathroom electrical outlets have protection {ground fault interrupter} (GFI) from shorting.
Rented-property owners {landlord} and renters can make written agreements {lease}. Leases state rent amount, occupation dates {tenancy}, rules governing property use, and rules governing tenant and property-owner actions. Leases are not necessary when renting for less than one year. After lease period, leases automatically renew month to month. Landlords can evict tenants without leases {tenant at sufferance} with short notice. Leases usually require a termination notice one month before lease end.
lease termination
If property owner does not perform lease or follow laws, tenant can terminate lease {lease termination}, with lawyer advice.
repair
Tenants can be able to deduct needed repairs from rent.
Property owners can evict tenants {eviction}|, for failure to pay rent or for lease violations, by going to court and asking to dispossess tenant. If tenant is not at court, property owner wins by default. Otherwise, property owner must show good cause. Property owners have right not to renew periodic leases and only have to give proper notice. Property owners cannot refuse to renew leases if tenants report housing violations to authorities.
Buying houses {buying house} {house buying} has many steps.
checklist
Before buying a house, check smells, sidewalks, roads, and traffic at rush hour and at other hours. Check noise inside and outside at rush hour and at other hours. Check natural light in rooms. Check heating and cooling type. Check stove and other appliance type. Check drawer, closet, and storage-room number. Check rug quality and cleanness. Check faucet noise and flow. Check leaks in pipes and faucets. Check toilets for seating comfort, drips, and noises. Check refrigerator size and type. Check handles and lights. Check doors and locks for fit and opening ease. Check doors for dead bolts. Check neighbor lifestyles, travel patterns, and nearness. Check termite or insect damage. Check inside walls for damage. Check brick cavity wall. Check insulation. Check roof for damage. Check upstairs and downstairs. Check stairs for creaks and damage. Check parking space location and size.
costs
Before buying, decide how much to pay for down payment, deposit, and monthly payment, including utilities, insurance, and taxes. Monthly payments for principal, interest, utilities, insurance, and taxes should not be more than 33% of family monthly income. Principal and interest monthly payment should not be more than 25% of family monthly income. Yearly home maintenance costs are typically 1% to 2% of home price. House price should not be more than two times family yearly income. Do not buy a house priced higher than average house in neighborhood. Check with banks, savings and loans, credit unions, mortgage brokers, and real estate agents.
search
Obtain financing. Then look for a house that has required features, using Internet, newspaper, real-estate agents, friends, and relatives. Most important is neighborhood, followed by school quality, average neighbor income, utilities, house appearance, crime rate, earthquake zone, and flood zone. Take time. List homes liked, with owner's name, price, utilities and other costs, location, and features. Try to buy in fall and winter. Try to buy a house that is among the cheaper houses in the best affordable neighborhood. Try to get a warranty, for new or old homes (ERA).
move-in costs
People typically spend 10% of house price to furnish it and fix it up {move-in cost}.
Owners can sell, using a purchase contract and following contract law, or agents {real estate broker} {real estate agent} specializing in selling real estate can try to find buyers.
Agent and owner define price and conditions, under which agent gets a commission {listing}.
types
Owners can offer a commission to any agent that sells house {open listing}. Only one agent can have right to sell a house {exclusive listing}. Owners can keep right to sell house, and then agent gets nothing {exclusive agency}. Agents can have guaranteed commission if house sells {exclusive right to sell}. Agents can ask other agents to find buyers {multiple listing}. Then both agents split commission.
period
Listing period is typically 60 or 90 days. Listing contracts automatically extend, unless you notify agent in writing.
To qualify for a mortgage, a qualified appraiser must estimate house value {appraisal}.
Written standard contracts {sales contract, house} can state house condition, conditions for selling or buying, guarantees, and payment method. Contract lists all items accompanying house. It has street address, lot number, section number, land legal description copied from official records, and official-record reference. It lists full names, date, price, and payment terms. It can have contingency clauses. It requires seller to give buyer guarantee that title is valid {general warranty deed}. It specifies that all actions will finish by a date {closing date} {settlement date} or in 30 or 60 days. It states who must pay transfer fees, state revenue stamps, prorated tax, water service fee, sewer service fee, heating, oil, insurance, and other costs {closing costs, contract} until closing date.
financing
It requires a deposit. Buyer must find financing, or contract is void and seller returns deposit.
Mortgages typically do not cover entire property cost, so buyer pays 5% to 20% {down payment} of price. Deposit counts toward down payment. Buyer pays down payment to escrow.
Parties give legal documents and money to a third party {escrow, house}, such as a title company,, who gathers all approvals, money, and documents for closing.
Buying a house has a final step {closing house sale}.
process
Lender's representative {closer} records deed and mortgage at county courthouse, gets title insurance in new owner's name, and mails document to buyer. Seller gets last payment from closer after recording deed and finishing financing arrangements. By closing or settlement date, financing, title search, title insurance, and deed are ready for execution and delivery to new owner.
After meeting all requirements, third party gives escrow documents and moneys to parties. At closing, parties correct defects in title. A statement {closing statement} lists transaction costs and determines income-tax deductions, rented-property depreciation, and capital gains.
Finally, sellers sign deed {execute deed} and deliver it to buyers, along with keys and copies of services and public utilities. Closing takes one hour. House sells when seller receives money and title transfers to buyer. Moneys {closing costs, housing loan} include down payment, loan amount, document fees, loan broker fees, title insurance, tax settlements, and other adjustments.
fees
Fees can be for loans, prorated taxes, credit reports, title reports, and title searches.
If an authorized agent finds a person that is ready, willing, and able to buy a house, seller must pay a fee or percentage {commission}.
House liens {mortgage} can be security for loans to buy houses. House buyers {mortgagor} pay moneylenders {mortgagee}. Mortgages have an indebtedness note and a property lien for debt security. Not making payments {default} cancels mortgage. Lenders have right to dispose of property by foreclosure, under court supervision, to recover lent money. Foreclosure proceedings have statutes.
types
Liens can have primacy {first mortgage}. Mortgages {open-end mortgage} can allow borrowing money in future without rewriting mortgage. Mortgages {packaged mortgage} can include household appliances, furniture, carpeting, and finance charges. Mortgages {construction mortgage} {home improvement mortgage} can require lender to pay costs to builder as construction stages complete. Mortgages {purchase money mortgage} {vendor's lien} can require purchaser to pay seller directly over a number of years.
title
States can give mortgagee title to property, but title cannot transfer until mortgagor completes payments and gains title {common law title theory of mortgage}. Most states give mortgagor title. For defaults, mortgagee has a property lien and right of foreclosure {lien theory}.
time
Loan length is typically 15 or 30 years.
insurance
Lender can require private mortgage insurance (PMI), to repay loan in case of job loss or other problem. Federal Housing Authority (FHA) and Veterans Administration (VA) can guarantee mortgages.
taxes
Mortgage interest payments are deductible from federal and state income tax.
Fixed or increasing monthly or semi-monthly payments reduce principal owed {amortization}|. If payments are constant, people pay off principal slowly at first, because payment is mostly interest.
Houses have value {equity, house}| above remaining principal owed on loan.
Lenders can pay real-estate taxes from accounts {escrow account}|. Lenders can pay monthly insurance fees {private mortgage insurance} (PMI), to insure loan payments, from escrow accounts. Monthly payments to lenders include these extra fees.
Lenders have right to dispose of property {foreclosure, house}|, under court supervision, to get back lent money. Foreclosure proceedings have statute laws.
Mortgages typically have a fee {point, mortgage}| to lender, which can be 1% or more, for originating mortgage and paper work, charged at closing.
Mortgages can allow paying off mortgage early {prepayment clause}.
Buyers can obtain second loans {second mortgage} on real property. Second mortgages are risky to lender, because first-mortgage mortgagee has first right to money. People can obtain second mortgages if borrower's credit is excellent or real-property value is more than both mortgages together. Second mortgages have higher interest rates.
County governments record that house and property real estate belong to someone {title} {deed to property}. Loan companies hold deeds until people pay off loans. Land ownership means having marketable certificate of ownership to land. Marketable title has value, which can have a guarantee {title insurance} that title has no legal defects and that requires company to go to court to defend title against unfounded claims. Real-estate transfers require title insurance. Title has a clear succession of landowners.
Before title transfer, people check official land records {title search} to find previous title owners, transactions involving the land, and unpaid taxes, to establish marketable title and to obtain needed releases. Independent abstract companies make title searches and write abstracts or digests of property histories. Title searches state opinion on title marketability, with releases and other legal proceedings.
Previous or apparent real property owners can relinquish all interest in property {release of property} {property release}.
Recording property history {abstract, title} {title abstract} ensures property ownership, location, and nature.
Title searches check past property ownership, to ensure that seller has full title {clear title} to land and house.
full ownership {fee simple}|.
Seller or owner can abandon rights to real property {quitclaim deed}.
States can give title {trust deed} {deed of trust} to trustee, who has no interest in the land or in either party. Trustee holds title for lender's benefit and forecloses if default.
Deeds {warranty deed} can say seller will defend title against other claims.
Turn off faucet water valve {faucet leak} {leaky faucet}. Replace rubber seal.
Open all hot-water faucets {faucet steam} {steamy faucet}. Turn off water heater. Run hot-water faucets until cool. Have professionals fix water-heater problems.
Walk fast out of house {fire, house}. Use ABC fire extinguisher {fire extinguisher} on small fires.
Cover pan fires {fire, kitchen} {kitchen fire}. For fires in ovens, keep oven door closed.
Do not use matches or electrical things {gas leak} {gas smell}. Turn off gas shutoff valve. Have professionals fix gas appliances or gas lines.
Turn off closest water valve for dishwasher, clothes washer, toilet, and sink or turn off house water-shutoff valve {leak, house}.
If neighborhood has power, but your house does not, check fuses and circuit breakers {power outage} {power failure}. Check for electrical short circuits.
Know shutoff-valve {shutoff, home} {gas shutoff valve} {water shutoff valve} and switch {electric shutoff switch} locations and how to shut them off.
For sink stoppage or overflow {sink stoppage} {overflow, sink}, turn off sink and dishwasher water valves. Use auger or funnel-cup plunger to unclog sink. Use chemicals only for slowly draining sinks.
Do not touch {sparks, house} {smoke, house}. Unplug appliance or turn off circuit breaker. Check for electrical short circuits. Check electrical plug and outlet for damage. Have professionals repair or replace.
For toilet stoppage or overflow {toilet stoppage} {overflow, toilet}, turn off toilet water valve. Use closet auger or funnel-cup plunger {plumber's friend} to unclog toilet.
Household hazards {hazard, housing} {household hazard} are asbestos, earthquakes, flooding, formaldehyde, lead, mold, radon, and wastes.
Natural fibrous minerals {asbestos, housing} do not burn, do not react chemically, and are good insulators. Asbestos was in plaster, sprays, roof materials, vinyl for floors, and insulation for walls, ceilings, boilers, ducts, and pipes. Asbestos can become powder, and friable asbestos fibers go into lungs.
Houses need protection from earthquakes {earthquake hazard} {seismic hazard}.
foundation
Houses with concrete slab foundations have no cripple walls or posts and typically already have anchors. Foundations can have anchors and anchor bolts or steel plates can attach sill plate to foundation. Foundation wood studs {cripple wall} can raise bottom floor higher above ground and create crawl space. Cripple walls can have plywood or diagonal wood strengthening. Concrete blocks with wood posts {pier-and-post foundation} can raise bottom floor higher above ground and create crawl space. Posts can have plywood or diagonal wood studs for bracing. Concrete blocks, stones, or bricks can be foundations. Brick and concrete-block masonry can have steel reinforcing bars in the grout.
other
Masonry walls have bricks, clay tiles, stones, concrete blocks, and adobe and need reinforcement with steel bars. Rooms over garages need bracing around garage door {garage door}. Water heaters {water heater} need a bracing strap attached to wall studs, to prevent tipping. Chimneys {chimney} need bracing.
soil
Earthquake shaking can cause soil liquefaction. Sloping soils can have landslides.
Houses should be above nearby lake and river water level {flooding, house}. Houses should not be in possible water-flow paths {flood zone}, such as below river or ocean levels or in channels.
Colorless water-soluble, organic-soluble organic-smelling gas {formaldehyde, housing} is in urea-formaldehyde and phenol-formaldehyde resins in plywood, particleboard, and oriented-strand board. Formaldehyde can be in paint, plastics, wrinkle-resistant-cloth resins, fiberboard, urea-formaldehyde foam insulation (UFFI), and photography chemicals. It is high in manufactured homes, mostly from composite wood.
powder or easy to powder {friable}|.
A heavy metal {lead, housing} was in gasoline and paint and is still in car batteries. Lead poisoning can result from lead in paint dust, exposed by sanding, scraping, peeling, chipping, chalking, and cracking. Lead can be in lead crystal, ceramic clays, bullets, and fishing weights. Traditional medicines can have high lead. Houses built before 1988 can have lead solder in water pipes.
Houses can have fungi {mold, housing} that break down organic materials. Molds can grow on wood, paper, and leaves. Molds look green, gray, brown, black, or white and smell musty and earthy. High mold-spore levels can damage roofs, beams, and floors. Flooding, leaky roofs, sprinkler spray, leaky plumbing, sink or sewer overflow, basements, crawl spaces, showers, cooking steam, humidifiers, and indoor clothes-dryer exhaust make moist places where molds grow. Mold spores can get in lungs and cause hay fever and allergies. Molds can produce poisons {mycotoxin}.
Natural odorless colorless radioactive gas {radon} comes from radioactive decay of uranium and radium in granite and shale. Radon then travels to soil and ground water. Homes can be on soil with high radon levels. Wells can access ground water with high radon levels. Radon causes cancer.
Wastes {waste, housing} can be poisonous, corrosive, flammable, explosive, or otherwise reactive.
poison
Poisonous chemicals {toxic chemical} are bleach, drain cleaner, insect killer, rat poison, rug cleaner, and weed killer.
corrosive
Corrosive or reactive chemicals {caustic chemical} are ammonia, batteries, bleach, drain cleaner, and oven cleaner.
flammable
Chemicals that can explode or catch fire {flammable chemical} {ignitable chemical} are petrochemicals.
cleaners
Hazardous household cleaners are ammonia, bleaches, drain cleaners, metal polishes, oven cleaners, and rug cleaners.
garden
Hazardous outdoor and garden chemicals are charcoal lighters, fertilizers, gasoline, insect killers, kerosene, rat poison, and weed killers.
car
Hazardous automotive chemicals are antifreeze, batteries, brake fluid, gasoline, oil, and transmission fluid.
household
Hazardous paint and household chemicals are glues, paint, paint removers, varnish, and waxes.
other
Oil, gas, petrochemicals, metals, dry cleaning fluids, printing chemicals are hazardous, and such wastes have special landfills. Wastes can contaminate soil and water wells. Houses can be close to leaking fuel and chemical storage tanks or sanitary landfills.
lees or sediment {dregs}.
wastewater {effluvium}.
garbage or animal mush {swill}.
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Description of Outline of Knowledge Database
Date Modified: 2022.0225