Real Estate Terms
A Hubbard Clause is an addendum or rider to a residential real estate have three days to release the Hubbard clause and meet the new Buyer's offer if the new This may mean not releasing the Hubbard until the mortgage. A meet-or-release clause has a contract, It allows contract signers to be Here are just a few examples of situations in which it may be useful to draft a release clause as a Real Estate Development: A release clause allows for the release of. A release clause, also called an escape or kick-out clause, is a clause in a an offer that's contingent on the sale of another property is risky.
Instead, real estate release clauses encompass two different types of agreements: Occasionally, a buyer accepts an offer, but agrees to allow the seller to seek other offers for a limited period of time. Another type of release clause in real estate refers to mortgages. A mortgage release clause allows a portion of property to be freed from the mortgage according to the amount of payment that has already been made. What Laws Govern Release Clauses? A release clause is basically a contract between the parties.
Therefore, release clauses are governed by the law of contracts. This means that a final agreement in a release clause is legally binding on the parties. In order to be enforceable, the release clause must fulfill all the requirements for a valid contract, such as: When an activity involves a high risk of injury or even death, a release clause will be employed. Examples include extreme sports like hang gliding, parasailing, skydiving, rock climbing, or skiing.
Instructors, property owners, or equipment rentals may ask customers to sign a release so they are not legally liable for any injuries that may occur while the customer participates in the activity.
Contractors involved in construction use many different kinds of release clauses to protect themselves from legal liability if a dispute should occur between parties. Such release clauses may be between the contractor and their client, the contractor and their suppliers, or even with employees of the contractor.
Business partners often sign contracts that involve release clauses. Disputes in the course of conducting business are common, and release clauses may be used to encourage parties to work out alternative ways to solve problems, such as mediation or negotiation.
A release clause allows for the release of collateral when the borrower pays off at least part of a loan. Such clauses are widely used in mortgages for subdivision developers. The lender has to release its lien on the property when a potential purchaser of one of the subdivision homes applies for their own mortgage. Another type of real estate release clause exists between a buyer and seller. It's common for a buyer to accept an offer but still allow the seller to seek other offers for a certain time period.
What Is a Meet or Release Clause?
In this case, the release applies to the seller, who is released from their exclusive obligation to the buyer while they try to find better offers. Typically the time limit is 72 hours. Marketable title need not, however, be perfect title. MARKET VALUE - The highest price, estimated in terms of money, which a property will bring if exposed for sale in the open market, allowing a reasonable time to find a purchaser who buys with knowledge of all the uses to which the property is adapted and for which it is capable of being used.
Normally, when real property is conveyed, the grantee receives all right and title to the land including everything above and below the surface, unless excepted by the grantor. MONEY - The cash deposit including initial and additional deposits paid by the prospective buyer of real property as evidence of his good faith intention to complete the transaction; called hand money or a binder in some states. In the absence of rental agreement oral or writtena tenancy is deemed to be month-to-month, or in the case of boarders, week-to-week.
In effect, the mortgage states that the lender can look to the property in the event the borrower defaults in payment of the note. MORTGAGEE - The one who receives and holds a mortgage as security for a debt; the lender; a lender or creditor who holds a mortgage as security for payment of an obligation. MORTGAGOR - The one who gives a mortgage as security for a debt; the borrower; usually the landowner; the borrower or debtor who hypothecates or puts up his property as security for an obligation.
NET INCOME - The sum arrived at after deducting from gross income the expenses of a business or investment, including taxes and insurance, and allowances for vacancy and bad debts; what the property will earn in a given year's operation.
Meet-or-release contract - Wikipedia
NET LEASE - A lease, usually commercial, whereby the lessee pays not only the rent for occupancy, but also pays maintenance and operating expenses such as tax, insurance, utilities and repairs. Thus the rent paid is "net" to the lessor. A deed often recites a nominal consideration, such as "ten dollars and other valuable consideration.
NOTE - A document signed by the borrower of a loan, stating the loan amount, the interest rate, the time and method of repayment and the obligation to repay. The note is the evidence of the debt. When secured by a mortgage, it is called a mortgage note. NOTICE - 1 Legal notice is notice which is required to be made by law, or notice which is imparted by operation of law as a result of the possession of property or the recording of documents.
NOTICE TO QUIT - A written notice given by a landlord to his tenant, stating that the landlord intends to regain possession of the leased premises and that the tenant is required to quit and remove himself from the premises either at the end of the lease term or immediately if there is a breach of lease or if the tenancy is at will or by sufferance; sometimes refers to the notice given by the tenant to the landlord that he intends to give up possession on a stated day.
NOVATION - The substitution of a new obligation for an old one; substitution of new parties to an existing obligation, as where the parties to an agreement accept a new debtor in place of an old one.
NUISANCE - Conduct or activity which results in an actual physical interference with another person's reasonable use or enjoyment of his property for any lawful purpose. OFFER - A promise by one party to act or perform in a specified manner provided the other party will act or perform in the manner requested. The first broker who secures a buyer ready, willing and able to purchase at the terms of the listing is the one who earns the commission.
OPEN SPACE - Certain portion of the landscape which has not been built upon and which is sought either to be reserved in its natural state or used for agricultural or recreational purposes such as parks, squares, and the like.
PARTY WALL - A wall which is located on or at a boundary line between two adjoining parcels and is used or is intended to be used by the owners of both properties in the construction or maintenance of improvements on their respective lots. All conditions and terms of the tenancy are carried over from period to period, and continue for an uncertain time until proper notice of termination is given.
PLAT - A map or a town, section, or subdivision indicating the location and boundaries of individual properties. PLOTTAGE - The merging or consolidating of adjacent lots into one larger lot, with the consequent result of improved usability and increased value; also called assemblage.
POINTS - A generic term for a percentage of the principal loan amount which the lender charges for making the loan; each point is equal to one percent of the loan amount. The prepayment penalty is charged by the lender to recoup a portion of interest that he had planned to earn when he made the loan.
PRE-SALE - A pre-construction sale program by a condominium developer who is required to sell a certain percentage of units before a lender will commit to finance construction of the project.
What Is a Meet or Release Clause?
The present worth of a payment to be received at some time in the future is the amount of the payment less the loss of interest. The will is presented to the probate court, and creditors and interested parties are notified to present their claims or to show cause why the provisions of the will should not be enforced by the court. These rights include the right to possess, to use, to encumber, to transfer and to exclude, commonly called the "bundle of rights.
The prospect does not become a client until the parties establish a fiduciary relationship, such as upon signing a listing contract or upon executing a DROA.
PUFFING - Exaggerated or superlative comments or opinions not made as representations of fact and thus not a grounds for misrepresentation. A statement such as "the apartment has a fantastic view," is puffing because the prospective buyer can clearly assess the view in each case. PUNCH LIST - A discrepancy list showing defects in construction which need some corrective work to bring the building up to standards set by the plans and specifications.
Back To Top RANGE - A measurement, used in the government survey system, consisting of a strip of land six miles wide, running in a north-south direction. RAW LAND - Unimproved land; land in its unused natural state prior to the construction of improvements such as streets, lighting, sewers, and the like. REALTOR - A registered word which may only be used by an active real estate broker who is a member of the state and local real estate board affiliated with the National Association of Realtors.
RECEIVER - An independent party appointed by a court to impartially receive, preserve and manage property which is involved in litigation, pending final disposition of the matter before the court. RECORDING - The act of entering into the book of public records the written instruments affecting the title to real property, such as deeds, mortgages, contracts of sale, options, assignments, and the like.
Proper recordation imparts constructive notice to all the world of the existence of the recorded document and its contents.
Releases involving real property transactions should be acknowledged and recorded.