Legal Requirements for Real Estate Transactions
Buying or selling a property is more than a mere financial transaction. Specific legal requirements exist for the transference of a property. Failing to follow through with these will mean a violation of law and interests by the parties involved. Continue reading to see the considerations to take carefully in purchasing a house.
If you intend to buy a home, here are necessary legalities to keep in mind during the process
- You will need a broker’s agreement if you have enlisted the service of a real estate agent to facilitate your purchase. This is necessary as these agents are predisposed to acting in the seller’s interests to gain a higher commission. It will help you have a formal agreement that assures the agent’s obligation to you, with the terms in your favor.
- Creating an offer document is the next step after finding the property of your choice. The offer document is a pitch to the seller that contains the legal title of the property, would-be sales price, payment structures, and the date for inspecting or possessing the property. If the seller agrees to this offer document, it becomes the purchase agreement.
- Before finalizing the property to purchase, it is necessary to have it professionally inspected. While this is not a direct legal requirement, the report done by professionals after the inspection may serve as a reference document in case of any problems that may arise in the future. You can discuss details for an inspection in the offer document presented to the seller.
- If you intend to secure a mortgage, you can get one approved before the purchase agreement is finalized. This way, your loan process is easier and faster. As with other background checks, such as credit scores, a loan provider may require a personal inspection of the property you intend to purchase with the loan.
- A title search is crucial that your loan provider may require you to carry out before approval. Title searches help prove that there are no hidden claims on a property that may prevent you from possessing it. A successful title search will mean that the seller has the legal right to put the property up for sale.
- The final stage of this process is the Closing. Your real estate attorney should be present to ensure all is in order. They will need to confirm the authenticity of the legal documents, such as deed of sale and sworn statements. The property seller, the real estate agent, and the loan provider will also be present. You will also need to sign mortgage and settlement agreements. When all these required documents are signed, the final step will be your attorney filing them with the state as a concluded transaction.
For all these listed above, it goes without saying that hiring a real estate attorney is a necessary expense when purchasing a property. It is in your interest to have someone carefully draft and verify any agreement before you sign them. You can discuss with your lender about adding attorney fees to the closing cost.
If you need quality legal representation or an attorney with expertise in the real estate market, get in touch with the Law Offices of Lamb, Carroll, Papp & Cunabaugh. We guarantee you prompt and effective service.