30 Property Law FAQs for Buyers, Sellers, and Renters

Property Law for Buyers

What is a property title?

A legal document that evidences ownership in and out any claims, liens, or encumbrances.

What is title insurance, and do I need it?

Title insurance protects buyers against ownership disputes or undisclosed claims. Very highly recommended, just for the peace of mind.

What is a purchase agreement?

A legal agreement between a buyer and seller outlining the specifics of a real estate transaction, such as purchase price, contingencies, and closing date.

Also read:

What is escrow?

A third party maintains funds and documents in an escrow account until all contingencies are met on a real estate transaction before transferring the property.

What are closing costs?

Expenses at consummation of a real estate purchase, including real estate taxes, title insurance, attorney fees, and loan origination fees.

What is a property survey?

A survey map that may be required by a lender or title insurer to reflect property boundaries and improvements.

What happens if the seller fails to disclose property defects?

Buyers can sue for damages or rescind the sale if the seller violated disclosure laws.

What is a contingency in a property contract?

A condition that must be met for the sale to proceed, such as securing financing or passing a home inspection.

Can I walk away from a purchase agreement?

Yes, but only if it is under the terms of the contract, such as a failed contingency. Otherwise, you lose your earnest money.

What is a deed?

A legal document transferring ownership of property from one party to another.

Property Law for Sellers

What are my obligations as a seller?

Sellers must disclose known material defects, provide a clear title, and follow the terms of the purchase agreement.

What is earnest money?

A deposit made by the buyer to show serious intent to purchase. If the buyer backs out without valid reasons, the seller may keep it.

Can I sell a property with a lien?

Yes, but the lien must be paid off or resolved before the sale can close.

Do I need a real estate agent to sell my property?

No, but an agent can make it easier and ensure that everything is done legally.

What happens if a buyer defaults on the purchase agreement?

The seller may retain the earnest money, sue for damages, or seek specific performance to enforce the contract.

What is a short sale?

Selling a property for less than the outstanding mortgage balance, often requiring lender approval.

Do I have to pay capital gains tax on my property sale?

It depends on the sale price, your profit, and how long you’ve owned and lived in the property. Exemptions exist for primary residences.

What is a property disclosure statement?

A document detailing known issues with the property, required by law in most states.

Can I sell a property “as-is”?

Yes, but you must still disclose known defects unless otherwise exempt by law.

What is dual agency in real estate?

When one real estate agent represents both the buyer and seller in a transaction, requiring full disclosure and consent.

Property Law for Renters

What is the difference between a lease and a rental agreement?

A lease is a long-term agreement (e.g., one year), while a rental agreement is usually month-to-month.

What are my rights as a tenant?

Tenants generally have rights to a habitable property, privacy, and protection from unlawful eviction.

Can a landlord raise rent in the middle of a lease term?

No, unless the lease explicitly provides for a mid-term increase.

What is a security deposit, and when do I get it back?

A refundable deposit to cover damages or unpaid rent, returned after the lease ends minus any deductions for legitimate expenses.

What is an eviction?

A legal process through which a landlord evicts a tenant for not fulfilling lease agreements, including rent default or intentional property damage.

Can a landlord enter my rental without notice?

Only in the case of emergency or by states laws that often permit notice before coming to inspect and repair.

May I break my lease without penalty?

Yes in such circumstances like living in uninhabitable or dangerous conditions; or on order from the armed forces; and/or mutual decision between you and the landlord.

What is subleasing?

When a tenant rents their leased property to another person, usually requiring the landlord’s consent.

What happens if I don’t pay rent?

The landlord can issue a notice to pay or quit, and if unresolved, may begin eviction proceedings.

What is a rent control ordinance?

Local laws that limit rent increases and provide protections against arbitrary evictions in certain areas.

These FAQs address common legal concerns for buyers, sellers, and renters. Let me know if you’d like further explanations or assistance with specific scenarios!