A form of insurance in which the insurance company protects the insured from certain losses, such as fire, vandalism, storms and certain other natural causes.
An examination of property to determine what condition the property is in and what repairs and/or treatments may be needed. Home inspections are normally done by the buyer during the option period, but on occasion a seller may have had a home “pre-inspected”. A home inspection will give a detailed report of the home’s condition, typically with pictures. On occasion, further inspections by specific trades (i.e.: foundation specialists) may be required to determine condition. Home Inspectors are licensed by the Texas Real Estate Commission.
A service contract that covers the major appliances and systems (HVAC, etc) in the house for a set period of time, usually from the date the home sells. The warranty guarantees repairs to the covered systems by an authorized vendor after the payment of a per occurrence service fee of around $75. Home warranties are usually negotiated in the contract and paid for by the seller.
A homeowners’ association is an organization created by a real estate developer for the purpose of controlling the appearance and managing any common-area assets during the marketing, managing, and selling of homes and sites in a residential subdivision. Membership in the homeowners association by a residential buyer is typically forced as a condition of purchase; a buyer isn’t given an option to reject it. A HOA is governed by elected residents of the community and sometimes managed by third party companies, depending on the size of the community. Homeowners associations play an active role by providing set rules and regulations for the homeowners as well as plan social activities.
Monthly payment required of members of the Homeowner’s Association. This payment is used to cover the current and upcoming expenses of the HOA. These expenses vary, but can include insurance, maintenance of common elements, common utilities and reserves for future expenses.
An insurance policy that combines personal liability insurance and hazard insurance for a home and its contents.
Also known as the “settlement statement,” it itemizes all closing costs for both buyer and seller.