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Sale Agreement Encumbrance

From the buyer`s point of view, it is important to be aware of the costs of a property, which are often transferred to the buyer at the same time as the property. In Hong Kong, for example, the seller of a property is legally required to inform the real estate agent of any charges to the property in order to avoid future problems in the sale process. The real estate agent makes available to the buyer a land search document containing a list of all charges. A rental agreement is a lease of a property at an agreed price and period. This is a form of charge because the owner does not abandon the property, but its use of the property is greatly limited by the rental agreement. Checking and understanding the conditions of the EPI and the definitions contained in it are the first steps to conduct a successful review of the acquisition. If you know what charges are allowed and which are not authorized, the examiner will save time and manage a profitable project for your acquisition. By clearly understanding the terms of the EPI, you save a potential loss for the newly acquired asset and have met the original purpose of the audit. The concept of charge includes a wide range of financial and non-financial claims of a property by parties other than the right holder.

Landowners may be burdened by complete control of their property, i.e. untaminated. In some cases, the property may be recovered by a creditor or confiscated by a government. Other charges, such as zoning laws and environmental legislation, have no influence on the marketing of real estate, but prohibit specific uses and soil improvements. A charge is a requirement against a property by a party that is not the owner. A charge can affect the portability of the property and limit its freedom of use until the charge is removed. The most common types of charges apply to real estate; These include mortgages, relief and property tax duties. Not all forms of burden are financial in nature, as relief is an example of non-financial expenses. A charge can also apply to people, unlike real estate. A pawn is a type of interest in security, a charge that affects the title of a property.

It gives a creditor the right to confiscate the property as collateral for an unfulfilled obligation, usually an unpaid debt. The creditor can then sell the property to recover at least part of his loan. For example, eligible common charges are itineraries, facilities, authorizations, surface leasing, mining rights and similar rights on leases. Existing charges, such as railways, power lines and highways, are generally permitted as long as they do not significantly affect the value, holding or use of an asset. It is customary for operators to insure mortgages on their assets to finance extensive exploration costs, cover drilling costs and ensure the future development of their assets. These securities fall within the normal business category and are generally considered eligible expenses. Taxation duties, pawn duties, the seller`s pledge rights and men`s material pawns are also normal charges allowed as long as payments or amounts are not due. Expenses such as enterprise agreements and pool returns are considered eligible, provided they do not significantly affect or reduce the value of the asset or limit its portability. In some cases, enterprise agreements that create a bond of less than a certain dollar amount are considered an eligible charge.