What are collateral documents in real estate?

What are collateral documents in real estate?

Deposits in guarantee of fixed assets

Law 1480 of 2011 through which the consumer statute is issued. Article 1 provides as a general principle to protect, promote and guarantee the effectiveness and free exercise of consumer rights.

As well as to protect the respect to their dignity and their economic interests, especially with respect to the real estate market with regard to the access of consumers to adequate information, in accordance with the terms of the law, allowing them to make informed choices. The following is a summary of the important points to be taken into account by the consumer at the time of purchasing real estate.

Article 29 of the consumer statute provides that advertising must state objective and specific conditions. In the specific case of the real estate market, renderings or images of the architecture of the project must be used, as close as possible to what will be the construction of the real estate project. To state at least the areas of the apartments or the price from where they start, and the common areas offered.

Escrow deposits examples

Furthermore, in view of the experience to date, and in order to restore the confidence of borrowers, provisions are introduced with the aim of enhancing legal certainty, transparency and understanding of contracts and their clauses, as well as a fair balance between the parties.

Directive 2014/17/EU recognizes in its recital (3) that “The financial crisis has shown that irresponsible behavior by market participants can undermine the foundations of the financial system, (…) and can have serious social and economic consequences”. In particular, the Directive highlights in its recital (4) that “the Commission has identified a number of problems in mortgage markets in the Union relating to irresponsible lending and borrowing, as well as the potential scope for irresponsible behavior among market participants, including credit intermediaries”.

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If you’re thinking about buying a home, you’re likely to hear the term “escrow” used in a variety of contexts. Let’s take a look at what escrow is, how it works and how it can help you as a buyer, seller or homeowner.

Because of the different purposes it serves, there are two types of escrow accounts. One is used during the home buying process, while the other is used during the life of the loan.

Generally, when you buy a home, your purchase contract includes a good faith deposit (also known as an “earnest money deposit”). This deposit shows that you really want to buy the house. If the contract is not fulfilled because of the buyer’s fault, the seller usually keeps the money. If the home purchase is successful, the deposit will be applied to the buyer’s down payment.

To protect both the buyer and the seller, an escrow account will be set up to hold the deposit. The good faith deposit will remain in this account until the transaction closes. The cash will be used for the down payment.

Delegated Superintendence for the real estate consumer

This shows that we know perfectly the market to value your property, as well as the sales techniques to sell your property efficiently. In addition, we are regulated by the College of API of the province of Alicante, which ensures that we act respecting the professional code of ethics.

The sale of a property requires a large number of documents that, as API, we supervise and provide you. In addition, we mediate between seller and buyer until the end of the process ensuring that both parties benefit and are satisfied. Our main objective in this regard is to simplify the selling process for you. In the seller’s guide we explain in more detail relevant aspects to take into account as a seller.

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We advertise and market your property, look for potential buyers both national and international, manage the visits to those interested in buying it and review and prepare all the necessary documents for the successful completion of the transaction.