Definition of "In rem"

The definition of in rem in real estate is a legal case against a property rather than a person. The legal application of in rem in real estate is most often seen when a homeowner defaults on their mortgage and the bank forecloses on the property. In such cases, the court must be located in the same county as the property being prosecuted. 

Example of in rem in real estate 

Will is an ambitious software developer living in the heart of the Silicon Valley. After designing and selling the rights to a successful ride-sharing app, Will suddenly finds himself in the possession of a large sum of money. As many newly wealthy individuals often do, Will quickly bought an extravagant home in an affluent neighborhood. 

However, things would not continue to go well for Will. The tech game is a cutthroat place, and those who don’t continuously innovate are rapidly left behind. As project after project fails, Will’s bank account shrinks further and further, and before long he is deep in debt, due to his lavish but unsustainable lifestyle. 

Before long, the bank comes around looking for its monthly payment, and Will is unable to pay. The next month, the situation remains the same, and by the third month the house is marked for repossession. With his credit score at an all time low and nowhere to turn, Will packs up his belongings and leaves the house, unable or unwilling to face the consequences of his choices. 

With Will nowhere to be found, the bank proceeds to file an in rem case against the property itself. With no objections, the case proceeds, and in a very short period of time the bank has foreclosed on the home. This is an example of how in rem is used in real estate.

Comments for In Rem

Evelyn Holmes Evelyn Holmes said:

Looking for foreclosure properties.

Sep 22, 2024  16:50:55

 
Real Estate Agent

Hi Evelyn thank you for reaching out to us today. please click this link and view the agents we have in the area that would be happy to assist you. https://www.realestateagent.com/real-estate-directory/new-york-city_ny.html

 

Good Luck -- Have a Great Day!!!!

Oct 08, 2024  14:52:58
 
Maia Jack Maia Jack said:

On a land parcel map, what do the letters REM before the lot number mean?

May 27, 2021  20:07:26

 
Real Estate Agent

Hey Maia! Thank you for reaching out to us. The letters REM on land parcel maps are an abbreviation for "remainder areas". When a parcel is split into smaller lots, we can find that notation on the remaining area on each side of the lot in question, along with information about the remainder area. In older drawings that showed how the land was sectioned, remained areas were noted with "left" or "right", depending on which side of the lot they were. Nowadays, the notation changed to REM for any area left outside of a parcel lot, regardless of its position to the lot in question.

Jun 03, 2021  11:39:47
 
 
image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

Are you planning on buying a house? If you are, you’re going to love the Buyer's Market definition. But if you are a home seller, you will wish that term never comes up again in your ...

When an owner of real estate dies interstate, having no enforceable will, the property descends, by operation of law, to the owner's inheritors. ...

Commonly, a covenant refers to a legal treaty or agreement between various parties. Explicitly, a stipulation comes into existence and is signed to confine particular financial transactions ...

Used when determining the worth of an annuity that reinvests the amount of recaptured investment at a risk-free interest rate. ...

An estate constrained from some heirs and dedicated to others on the basis of a certain condition. ...

Combination of insurance policies on property with each providing an additional increment of coverage exceeding the limits of the preceding policy. For example, policy A adds $70,000, then ...

Supplementary narrow pathway, such as to a building. ...

Real estate market where supply significantly exceeds demand enabling potential buyers to obtain lower prices and good deals. ...

Glass containing wire support to make it stronger. There is less chance of glass being broken into pieces and hurting people. ...

Popular Real Estate Questions