Real Estate Alphabet Soup: B Is for Buyer
In my last post, “Real Estate Alphabet Soup: A Is for Acquisition” I introduced a new primer on the “alphabet soup” of real estate. This post continues to stir the “alphabet soup” with the letter B.
B is for “buyer.” As part of any agreement for the transfer of real estate, there must be a willing seller and a willing buyer. A “bona fide” purchaser or “buyer” in the ordinary course of business is one who purchases the property, for valuable consideration, in good faith, with no notice of any claims of any other parties concerning the purchase or the property.
B is also for a real estate “broker” who, for a commission or fee, may be involved in bringing the buyer and seller together to negotiate the terms for the sale and purchase of the property. As part of the negotiation, the parties determine who will pay for the broker’s commission or fee.
Land may be vacant or “unimproved,” or it may be “improved” by improvements, or there may be a “building” constructed on the property. And if there is a building or buildings located on a parcel of land, a survey of the property should confirm that any building does not encroach upon any designated “building restriction line” or “building setback,” which may be established under local land use regulations.
B is also for “boundary,” which is the outer or external limits or lines of a property. A metes and bounds survey will establish the boundaries of the property. And just like as children we are taught to “color within the lines,” property owners need to stay within the boundaries of their property in order to avoid any boundary line disputes with their neighboring property owners.
In my next post, I will move on to the letter C, the next letter in this real estate “alphabet soup.”
This blog was written by Anne-Herbert Rollins at Miles & Stockbridge.
Opinions and conclusions in this post are solely those of the author unless otherwise indicated. The information contained in this blog is general in nature and is not offered and cannot be considered as legal advice for any particular situation. Any federal tax advice provided in this communication is not intended or written by the author to be used, and cannot be used by the recipient, for the purpose of avoiding penalties which may be imposed on the recipient by the IRS. Please contact the author if you would like to receive written advice in a format which complies with IRS rules and may be relied upon to avoid penalties.