Lydia Taylor February 19th, 2008
Many first time home buyers are confused about what earnest money is and why they should offer it when they attempt to purchase a home. Earnest money is a deposit given from the buyer to the seller, as ‘evidence of good faith’ in purchasing real estate. This shows the buyer’s commitment to the property considered for purchase, and that the buyer is truly interested in the property. It also gives the seller incentive to pull their property off of the market for someone that is serious.
I like to put buyers in sellers shoes. If you were selling your home and someone asked you to take your home off the market for 20-60 days, wouldn’t you want money in place in case the buyer backs out for no reason? There would be no repercussions on the buyer for doing so! When earnest money changes hands, the buyer has invested money in the transaction and insures they want it to continue to a successful conclusion.
Do not worry- if you have a reason within the contract to back out, you will get your earnest money back. On the other hand, if the deal works out successfully, on the day you close on the home the earnest money is applied to your down payment or closing costs. So you can plan on having your earnest money applied toward your real estate purchase.
Lydia Taylor June 19th, 2007
- Fixture-An item of personal property which, through its attachment to, or association with, real estate, loses its identity as personal property and becomes real property.
Strangely enough, fixtures that are taken from the home by the seller can be one of the biggest sticking points in a real estate transaction. I was involved with one a few months ago where my home buyer really liked a wrought-iron fence gate, and was willing to walk on the deal when it was discovered the home owner was taking the gate and replacing it with a ‘normal’ one!
There are 3 tests to determine if the item is personal property, which means you will take it when you move; or if it is a fixture (real property), which means it stays with the home.
- Annexation: The method by which the thing in question is attached. (i.e. is it attached by nails, screws, concrete, bolts, etc.?)
- Adaptation: The item is designed for that property.
- Intention: Did the owner (seller) intend for it to stay?
If the item is bolted in, designed for the house, and it was not intended to move, then it most certainly is a fixture. An easy example is a ceiling fan. The fan is screwed in the ceiling, it probably matches the house, and it would be a pain in the rear to remove it. This makes it a fixture.
If you are a home seller and intend to take a fixture with you, make sure all parties know that up front. Common examples are chandeliers, shelves which appear to be ‘built-ins’, door knockers, and yes, fence gates.
Lydia Taylor May 31st, 2007
- Riparian rights - The right of a landowner to use the water on, under, or adjacent to his land. Also known as aquatic rights or water rights.
For the homeowner that has a home that borders a river, riparian rights gives the homeowner the right to use the water as they see fit - unless it harms owners downstream. Whether your ownership stops at the river line or to the center of the river is determined by the navigability of the waterway. If the waterway is navigable, ownership stops at the high water mark. If the water is not navigable, then ownership extends to the centerline of the river or stream. Unfortunately there is some debate at to how navigibility is defined, but the official definition is waters that can afford a channel for useful commerce.
