When purchasing a house, it is essential to locate a lawyer with transparent pricing so as to prevent overpaying for services rendered.
Attorneys offer numerous services, from drafting and negotiating purchase contracts, ordering title reports and searches, managing Escrow payments and overseeing transfers, to overseeing transfers.
They can also manage issues that lead to closing failures.
The Contract of Sale
A purchase contract outlines all parties’ responsibilities in a real estate transaction leading up to its conclusion, such as financing contingencies (to ensure a buyer can obtain financing) or title contingencies (to verify ownership without any liens against it). It may contain various contingencies which must be fulfilled prior to closing such as home inspection, financing contingencies (so buyers are eligible for loans), title contingencies or home inspection requirements that must be satisfied before it closes.
Contracts typically require buyers to put down earnest money as part of the agreement process, and any attempt at breaking this contract could incur this deposit, often worth thousands of dollars.
While many buyers and sellers rely on their real estate agents to draft contracts, hiring an attorney for both drafting and review can help avoid mistakes that could cause legal or tax complications in the future. Furthermore, attorneys can review contracts for any ambiguities which might make parties unclear on what obligations are expected under the agreement. Contracts should also provide specific property details, payment terms as well as who covers closing costs and property taxes.
Preparing for Closing
Before closing on your house loan, your lender must complete an appraisal to make sure you are not overpaying. A professional will evaluate comparable sales and key features of the home to ascertain its value. In addition, buyers should conduct one last walk-through to ensure any negotiated repairs have been completed and that it passes any municipal fire safety inspections.
Closing typically takes around two hours, during which you will sign loan documents and acquire the property deed from the seller. A title company works to protect both buyer and lender interests during this process by conducting an extensive title search on the property to identify existing liens that could compromise your legal right to buy and occupy it.
Before closing, it is important to prepare financially and confirm all required documents with your closing agent. Be sure to bring cashier’s checks, certified checks, a photo ID as well as utilities or services under your name.
Title Issues
Title issues arise when buyers’ legal right to own property is affected, such as by liens, debts or claims made against it. One effective method to address title problems early and proactively is through performing a thorough title search before closing; this may reveal previously undetected problems like unpaid taxes, easements or boundary disputes that need attention.
Title issues often stem from errors in public records, such as filing errors that change a property’s legal description or ownership details, while others can stem from fraudulent transactions, forgery, or illegal deeds.
Most title issues can be settled before closing date, with public record corrections or even quick dispute resolution sessions between real estate professionals often sufficing. Other matters, like lien or ownership disputes, may take more time and require funds be held until their resolution occurs; an escrow agreement may help.
Failure to Close
No matter the best efforts of everyone involved, some closings don’t go according to plan. For example, buyers may not be able to secure financing even after working closely with multiple lenders and providing ample time.
Under certain conditions, buyers have the right to terminate a sale and claim back their earnest money deposit. Conversely, sellers are entitled to damages from buyers for failing to close within the timeframe stipulated in their sales contracts.
According to your circumstances, these could include lost interest income, mortgage insurance premiums, property taxes and resale costs. Furthermore, sellers have an obligation to minimize losses, which means finding new buyers quickly to prevent further money and time losses. Therefore, having an experienced real estate lawyer represent you during closing is crucial in order to take the correct course of action.