Intro to Freehold Transaction Flashcards
1
Q
Caveat Emptor
A
Buyer takes property as they find it (includes bad bits). Therefore, conduct investigations. If dont like something can pull out before exchange. Cannot get refund of costs.
2
Q
Types of surveys
A
Basic Valuation: most basic required by lender
Homebuyer: property under 150 years old (best to recommend)
Full Structural: over 150 years / lots of renovations (most detailed)
3
Q
Types of mortgage
A
Capital Repayment: repay capital and interest
Interest only: only repay interest. Repay capital on sale / expiry
Endowment: interest only. But, invest payments. Investment should be enough to repay capital at expiry.
