A new home is a significant investment. It involves a sector of law that deals with real property and title transfers. This raises new kinds of problems and issues that do not occur with other types of transactions. A real estate attorney is trained and well equipped to provide support and professional advice about buying or selling a house.
Steps to a Home Purchase
Most home purchase transactions involve the seller and real estate agent entering into a brokerage contract. Once the broker finds a potential buyer, they act as an intermediary. The buyer and seller enter into a purchase agreement, which is a formal written contract of the agreed-upon sale. The seller later transfers the property over to the buyer and receives the promised financing as stated in the contract.
Problems with a Home Purchase
A lawyer can ensure that home buyers and sellers do not encounter problems with a sale. In many cases, real estate agents provide sellers with a standard brokerage agreement form. These forms do not cover most of the legal problems that could arise with the negotiation. They also do not take into account the specific and unique circumstances that surround each sale.
Unclear agreement terms could mean the seller would still have to pay a commission fee to a broker even if the sale falls through. An attorney can properly explain the terms of an agreement to the seller and to inform them of suggested and necessary changes.
Lawyers can serve as a good source of information for both buyers and sellers. Each lawyer can clarify important considerations like the sale’s tax consequences. This is especially important to a seller as a large profit sale could result in significant income tax deductions. An attorney may be able to take advantage of tax provisions and determine whether a sale can be counted as an exception or for reduced tax cuts.
A purchase agreement often comes with several considerations for both buyer and seller. Lawyers can explain the form to each side and include changes and additions that reflect their desires. Some issues that they may need to settle in the contract include whether the property has undergone any alterations, if property inspection will find termites, lead-based paint, or hazardous waste, and the legal consequences that will result if a contract is signed but closing does not occur.
Finishing a Negotiation
Closing a home purchase requires a deed, closing papers, legal transfer of the property title from seller to buyer, and the buyer’s payment of the purchase price.
Lawyers can be helpful at this stage because they can explain closing costs and terms. They can ensure that transfer and payment documents are executed appropriately and that last-minute disputes do not infringe on either the buyer or the seller’s rights.
A real estate negotiation can be complicated and confusing for inexperienced buyers and sellers. Real estate attorneys can provide peace of mind during these negotiations. This is especially crucial for buyers making a huge purchase and sellers letting go of their property.