Sonic Realty

Real Property: Understanding the Foundations of Real Estate Ownership

Real Property: Understanding the Foundations of Real Estate Ownership

Introduction: Real property is a fundamental concept in real estate that encompasses land, buildings, and other permanent structures attached to the land. In this blog post, we’ll explore the critical aspects of real property, its characteristics, and its significance in real estate transactions.

Definition of Real Property: Real property, or real estate or realty, refers to tangible assets consisting of land and any improvements permanently attached to it. This includes the land itself and buildings, houses, fences, trees, and other fixtures on the land. Real property can be residential, commercial, or industrial; ownership rights are typically established through legal deeds or titles.

Characteristics of Real Property:

  1. Immobility: One of real property’s defining characteristics is its immobility. Unlike personal property, which can be easily moved or transported, real property is fixed in location and cannot be physically relocated.
  2. Indestructibility: Real property is also characterized by its indestructibility. While individual components may deteriorate over time, the land itself is permanent and cannot be destroyed.
  3. Unique Characteristics: Each parcel of real property is unique, with its physical features, location, and potential uses. Factors such as location, topography, zoning regulations, and proximity to amenities can all affect the value and desirability of real property.

Significance of Real Property in Real Estate Transactions: Real property plays a central role in real estate transactions, serving as the subject of buying, selling, leasing, and financing transactions. Ownership of real property entitles the owner to a bundle of rights, including the right to possess, use, transfer, and dispose of the property. These rights are protected by law and can be conveyed through legal instruments such as deeds, leases, and easements.

Types of Real Property Ownership: There are several types of actual property ownership, each with its own legal and financial implications:

  1. Fee Simple: Fee simple ownership grants the owner full and unrestricted rights to the property, subject only to applicable laws and regulations.
  2. Leasehold: Leasehold ownership gives the holder the right to use and occupy the property for a specified period under the lease agreement terms.
  3. Condominium: Condominium ownership involves owning a specific unit within a multi-unit complex and sharing common areas and amenities.
  4. Cooperative: Cooperative ownership entails owning shares in a corporation that owns the property, with the right to occupy a specific unit based on the number of shares owned.

Conclusion: Real property is a foundational concept in real estate, encompassing land and all improvements permanently attached to it. Understanding the characteristics and significance of real property is essential for buyers, sellers, investors, and other stakeholders involved in real estate transactions. By grasping real property fundamentals, individuals can confidently make informed decisions and navigate the complexities of the real estate market.

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Affiliated Business Arrangement Disclosure Statement
This is to give you notice that Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC have a business relationship. The nature of the relationship between the Referring Party and the provider(s), including percentage of ownership interest, if applicable, is: Sonic Loans Inc., Sonic Title Agency LLC, and Sonic Realty LLC are all 100% owned by the same party. Because of this relationship, this referral may provide any of the above parties with financial or other benefit.
A. Set forth below is the estimated charge or range of charges for the settlement services listed. You are NOT required to use the listed provider(s) as a condition for settlement of your loan on, or purchase, sale, or refinance of, the subject property.
THERE ARE FREQUENTLY OTHER SETTLEMENT SERVICE PROVIDERS AVAILABLE WITH SIMILAR SERVICES. YOU ARE FREE TO SHOP AROUND TO DETERMINE THAT YOU ARE RECEIVING THE BEST SERVICES AND THE BEST RATE FOR THESE SERVICES.
Provider and Settlement ServiceCharge or Range of Charges
Sonic Realty LLC1%-6% of purchase price
Sonic Title Agency, LLC Title Insurance Policy: $950 - $1706 on a $250,000 property. (Rates vary and are dependent on the state, selling price, and loan amount on the property.)
Title Search Fee: $250 - $325 (where applicable)
Closing Fee: $450 - $650
Sonic Loans Inc.

This company provides various real estate mortgage loan origination activities either as a third-party originator or a mortgage broker, including loan pre-qualification, competitive bid process (when providing third-party origination services), loan origination, loan pre-approval, loan structuring, processing, and closing.

Loan Origination Charge: 0-3 % of loan amount (may include 3rd party fees)
Loan Discount Fee/points: 0.5%-6% of loan amount.
Application/Processing Fee: $0.00 - $875.00
Flood and tax service: $0.00 - $95.00
Underwriting Fee: $0.00 - $1295.00
Document Review Fee: $0.00 - $400.00
Appraisal Fee: $0.00 - $850.00
Credit Report Fee: $0.00 - $135.00

Actual charges may vary according to the particular lender selected, the particular services provided, and the underlying transaction, borrower selections, etc. Some or all of these fees may be charged by third parties and/or the Member Mortgage Lender/Mortgage Broker. The Member Lenders and Mortgage Brokers have agreed to pay a fee ranging from 0.5% to 2.75% of the loan amount to Sonic Loans in connection with a range of loan origination services provided by Sonic Loans to the Member Lender/Mortgage Broker. The fees are paid either directly to Sonic Loans by the Member Lender/Mortgage Broker or billed directly to you at closing.
B. Set forth below is the estimated charge or range of charges for the settlement services of an attorney, credit reportingagency, or real estate appraiser that we, as your lender, will require you to use, as a condition of your loan on this property, to represent our interests in the transaction.
Sonic Loans Inc. provides mortgage lender/broker services. Sonic Realty LLC provides real estate brokerage services. Sonic Title Agency LLC provides title insurance and settlement services.

Provider and Settlement ServiceCharge or Range of Charges
Appraisal Fee$0-$800
Credit Report Fee$63-$125
 Actual charges may vary depending on the lender and loan program selected which can be found on your loan estimate.
ACKNOWLEDGMENT
I/we have read this disclosure form and understand that Sonic Loans Inc., Sonic Realty, LLC, or Sonic Title Agency LLC are referring me/us to purchase the above-described settlement service(s) and may receive a financial or other benefit as the result of this referral.