Previously, real estate transaction was equivalent to sale and the buyers were completely liable to detect the defects in properties before buying. A large number of agents worked for the seller, so they were not responsible to the buyers for anything. This was more evident, especially when the agents represented the sellers. At the end of 1960’s, the consumer advocacy groups became active and tenant’s rights were introduced. In this situation, most of the states compelled the law making body to implement disclosure laws in real estate transactions.

What is the function of the disclosure law?

The disclosure law was introduced to protect the buyers as well as prevented sellers from hiding serious defects in a property. Therefore, when the seller lists a property for sale with the help of real estate broker, he is required to disclose the defects before selling. According to the disclosure law, the seller is required to provide information required by the state in regards to the condition of the property.

In Southern states like Georgia and Louisiana, where termites are considered to be the biggest issue. In this area, the properties are required to undergo pest inspection by a licensed exterminator before closing. If the property does not have proper condition, then the buyers have the right to back out of the sale. The buyers even have the right to ask the seller to fix the problem areas if required.

Is it justified to implement the disclose law?

Most of the buyers as well as sellers may consider the justification behind disclosure laws. Due to the implementation of the disclosure laws, both the parties need to agree to the terms of the sale to close the deal. Therefore, the sellers are required to disclose the known defects to make the buyers aware of the basic defect of the property. If the buyer drops the idea of buying the property after evaluating the property, then the contract is void.

Do the state laws vary from state to state?

The degree of disclosure law varies from state to state, and the issues that are required to be disclosed are different from state to state. In some states the properties are sold on the basis of a written agreement. However, in other states, the sellers are required to disclose the information under every circumstance.

Are disclosure forms available?

In most of the states, you may get disclosure forms or check list inclusive of questions that the sellers need to answer. This form is an indispensable part of the real estate contract. The buyers are required to sign on the disclosure form in order to signify that they’re aware of the disclosure. If the buyer detects any problem in the property that is proved that the seller knew, then the buyer can sue him for not disclosing.

Therefore, you need to be cautious while buying a property and ensure that the seller provides a disclosure form according to the real estate law.   

Majority of the real estates and mortgages brokers are sales people who work for commission based projects. Now, if you have not been accustomed with such commission based projects, you must be wondering as to how do these payment type works. Commission is nothing but the payment which is made based on the sales that an employee can make. It mainly is based on the total sales percentage. Therefore, the more is the percentage of sales, the more will be the amount of money that the sales person may be able to earn. Now, there can be various such situations when marketing may not go well, or the people may not even be interested in buying a thing. This therefore means, almost little or no money for the sales people. So, how can you as a sales person ensure that you have little problem, with regards to your finances?

Pros and cons of the commission system

The commissions serve as an extra income for you, but in some cases salary comes mainly in the form of commissions. However, the main problem is that it may not be possible to earn commissions as always. This therefore spells doom for those whose salary is mainly based on the commissions. There can be months when you may have lots of money to make and then there also will be months, when you may have no option at all to earn. So, there both are the advantages and disadvantages of this commissions system.

Getting financially strong through wise budgeting

It is extremely important for you to strengthen your finances, and that would be possible if you:

1. Start saving for the rainy days – As you are into a commission based job, it would be important for you to start saving from the very beginning, if you follow a strict budget, and if you control your impulses, it may become easier for you to save more. The more you save, highly secure is going to be your life, even if you cannot earn commissions all the time of the year.
2. Plan the amount of sales possible – As it may not be possible for you to earn throughout the year, it would be better to plan the sales program. This is going to help you in planning as to how much you can earn. Based on that you may have to decide what your affordability level would be like throughout the year. The expenses made, will have to be based on the same.
3. Compare prices before buying anything – It would be better to compare prices before buying any items. This is going to help in ensuring that you save money even on the things you require the most.

So, this is how you can stay financially fit and avoid going bankrupt or extremely dependant on others, during the no commission period.