In most real estate transactions, the earnest money deposit is held by a neutral third party, such as an escrow agent or broker, to ensure the buyer’s good faith and protect the funds until the transaction is complete.
A leasehold estate refers to a tenant’s interest in property and is not considered a freehold estate. Freehold estates, like fee simple and life estates, grant ownership rights, while leasehold estates are temporary and based on a rental agreement.
The Truth in Lending Act (TILA) ensures that lenders provide borrowers with clear and complete information about the cost of credit, including interest rates, fees, and other terms, so that consumers can make informed decisions.
A tax lien and a mechanic's lien are considered involuntary liens, which are placed on property without the owner’s consent, usually due to unpaid taxes or work completed but not paid for. A mortgage lien, by contrast, is voluntary because it is agreed to as part of a loan agreement.
The fiduciary duty of loyalty means that the real estate agent must act in the best interests of their client and place the client’s needs above their own in all dealings related to the transaction.
