10 Important Real Estate Terms You Should Know, Part 2
In the first article, we learned about terms associated with acquiring property during the initial stage of purchase. Continuing with our series of important real estate vocabulary, now we will focus on other terms that are necessary for buyers’ information for loans/debts, special circumstances like lost documents, death, and conjugal properties.
Absolute Community of Property
When the husband and wife are co-owners of all properties brought into the marriage (ex. properties owned while single and properties acquired during marriage), a couple has absolute community of property. But if the property was acquired as an inheritance/through “gratuitous” means or by a spouse with legitimate descendants from a previous marriage then the property is not co-owned.
Acceleration Clause
A provision in the loan contract that allows bank/lender to require the borrower to repay the loan in partial or full amount if the borrower defaults on the loan.
Administrative Reconstitution
Republic Act No. 6732 proclaims the administrative reconstitution of original copies of certificates of titles lost or destroyed due to fire, flood, and other force majeure/acts of God provided that at least 10% or more or a minimum of 500 titles in the Register of Deeds have been damaged or lost.
Antichresis
When you borrow money from a friend or another person, and you have a contract that states that he will take possession of your property as payment of your debt, that is called antichresis. The property is still yours but this agreement gives the other person the rights over your property’s income.
Conjugal Partnership of Gains
For married couples when husband and wife place in a common fund/bank account the proceeds, products, fruits and income from their separate properties. Also included are properties acquired by either or both spouses through their efforts or by chance.
Conjugal Partnership of Gains only applies to spouses who got married before the effectivity of the Family Code on August 3, 1988.
Dacion en Pago
A Spanish word that means “dation in payment”, this is a special payment arrangement made by a debtor to a creditor in exchange for the settlement of debt.
Decedent
A deceased person who transfers property to others by will or law is called a decedent. When you left a will before you died, you are called a “testator”.
Estate Tax
Related to the previous word, this is the tax on the right to transfer ownership to lawful heirs/beneficiaries when a person dies. The tax is not paid for the property but only for the right to transfer ownership. After 2018, the fixed payment term for estate tax is one year after death.
Holographic Will
The most powerful kind of will that is handwritten by the person who decides how his estate will be distributed after death.
Probate
To establish if a last will is authentic and valid, a court proceeding called probate is done to ensure that all provisions in the will are lawful. In cases when the decedent removes lawful heirs without due cause, a probate is needed.
The last three words are for estate management and not for purchasing properties. Though it’s also useful for heirs of deceased persons to know the mandatory payments to inherit properties, and the validity of last will, especially if there are ongoing disputes about family property. For married couples owning properties, knowing this information will be beneficial should dissolution of marriage occur, or any illegitimate child will claim to your spouse’s estate upon death. In those cases, you would need to have a family law attorney. Follow my page for the next series of real estate terms.
