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Real Estate

We focus on the following main types of real estate documents--purchase agreements, land contracts, deeds, easements, leases, notes, and mortgages. We follow a three step approach to eliminate legalese in these documents.

First, we identify the people who write the documents. They are as follows:

Table 1---Types of Real Estate Documents

    14a Purchase Agreements Boards of Realtors and Title Insurance Companies
    14b Land Contracts  
    15a Deeds members of Real Property Law Section of State Bar of Michigan
    15b Easements  
    16. Leases  
    17a Notes
    17b Mortgages
    Federal National Mortgage Corporation/Federal Home Loan Mortgage Corporation (FNMA/FHLMC)

Second, we find people in the these groups who have the interest, ability, and courage to write these documents in plain English. And we ask them to join us to work in an organized way from within the system to eliminate legalese from these documents.

Table 2--Plain English Subcommittee on Real Estate

    John Rohe private practitioner in Petoskey, Mi.
    Greg Ulrich Cummings, McCorey

Third, our subcommittee then finds clear examples of real estate documents, gives them Clarity Awards, and promotes them as good examples to follow. Below are some excerpts from some of the documents that we consider to be written clearer than most real estate documents.



14a. Purchase Agreements (Sales Contracts)

from Sales Contract of Ann Arbor Area Board of Realtors

Terms: Balance of _______________Dollars ($________) will be paid as follows: cash or certified funds in full at the time of closing. This contract is contingent upon Purchaser qualifying for and obtaining a mortgage commitment as designated below for which Purchaser agrees to apply within _______ business days and pursue in good faith upon acceptance of this contract. Unmarked terms of purchase do not apply. THIS FINANCING CONTINGENCY TO BE REMOVED IN WRITING ON OR BEFORE (date)________________.



14b. Land Contracts
(example needed)



15a. Deeds
(example needed)



15b. Easements
(example needed)



16. Leases
(example needed)



17a. Notes

from FNMA/FHLMC Multistate Adjiustable Rate Note ARM 5-0 Form 3601 3/85

1. Borrower's Promise To Pay In return for a loan that I have received, I promise to pay U.S. $____________(this amount is called "principal"), plus interest, to the order of the Lender. The Lender is _____________. I understand that the Lender may transfer this Note. The Lender or anyone who takes this Note by transfer and who is entitled to receive payments under this Note is called the "Note Holder."



17b. Mortgages
(example needed)