A lawyer can be invaluable when transferring property from an estate or trust, clearing away any liens on title, and other issues affecting ownership of real estate.
Real estate attorneys specialize in handling the legal complexities associated with selling homes, such as zoning restrictions, easements and liens.
Drafting the Offer to Purchase
Legal representation can assist in creating an offer to purchase real estate that is legally sound and binding. Your attorney should use a residential purchase agreement compliant with state laws; then tailor it specifically for your needs; for instance establishing the amount you are willing to spend for the property and any contingencies before closing. Your lawyer can also advise on how much earnest money deposit should be included as part of the offer, providing guidance as to when and how it should be sent out in response to acceptance of it by the seller.
An essential step in crafting an offer to purchase is setting a fair price, taking market conditions into account as you do so. An offer significantly below asking price will likely be rejected and may give the impression that you aren’t serious about purchasing the property. To stand out among other offers, it may help if you include a letter with your offer that details why this property holds special meaning to you personally.
An offer to purchase requires you to specify what will be included and excluded, such as fixtures and personal property. Furthermore, this section of your offer should provide details regarding the property such as its address and MLS number as well as any pertinent details that might be important to the sale process.
Contracts should include dates for both your mortgage loan to close and property closing. If an alternative date is needed for either event, your attorney will negotiate with the seller to find an agreeable solution. In addition to helping secure any necessary documents required by lenders or title companies and resolve any potential issues they encounter during searches.
Some states mandate that real estate lawyers handle the closing and legal aspects of property sales transactions, yet even where this isn’t required it can often be worth it to have one do it anyway. Your attorney will ensure all terms in the purchase agreement are fulfilled at closing and that clear title to the property has been transferred to you. He or she will also prepare necessary closing documents as well as review other paperwork from sellers, buyers and lenders to ensure everything runs smoothly.
Reviewing the Offer to Purchase
As soon as a seller receives an offer to purchase from a prospective buyer, they should carefully evaluate its legal implications. An offer typically contains several details including property address, price and terms for earning money deposits. A purchase agreement is legally binding – should there be any issues, they can negotiate over specific parts or simply reject it completely.
A purchase agreement typically outlines a timeline for closing, contingencies that the house must fulfill and mortgage approval details, along with items included such as window treatments and appliances in the sale. Furthermore, this document should identify both title companies and escrow officers that will oversee closings as well as their attorney appointments for reviewing this document by both buyer and seller parties.
Submitting an offer to purchase is often handled through the buyer’s real estate agent; in certain instances, both seller and buyer can be represented by one and same agent – this arrangement known as dual agency can become problematic as this person has allegiances to both parties and could create issues when negotiating. It would be prudent for you to retain a lawyer who only represents your interests to ensure they remain safe.
If the offer of purchase raises significant concerns, you should decline and look for alternative buyers. If minor concerns can be addressed through counteroffers or acceptance of it as is, accepting the offer and moving forward would still require legal documentation preparation; either way, your lawyer must prepare the contract document.
Once the contract is in place, a meeting with the bank attorney to review documents will be scheduled. At this meeting, they will explain how their financing works as well as any ramifications should you miss payments or encounter other events that occur during its terms. Furthermore, their attorney will review the mortgage document to inform you on prepaying your loan or changing its interest rate if desired.
After closing, you will provide the full purchase amount to escrow and the seller will give over keys. In general, arrangements will be made so you can move right in afterward.
Preparing the Contract of Sale
Once a buyer accepts or counteroffers an offer made by the seller, lawyers from both sides must draft a formal contract of sale to protect both parties and ensure its terms are clear, legal and enforceable – this step is especially crucial for new sellers without prior experience going through this process.
Contracts typically include several key provisions: purchase price, deposit amount (similar to earnest money) the buyers will send the seller’s attorney upon offer and any conditions that must be fulfilled before closing can take place, such as inspection or mortgage financing requirements. Attorneys for both sides also need to check that there are no issues with title to the property – like liens or violations that need clearing up prior to closing; similarly they review surveys of neighboring properties or easements for potential encroachments by homes on them.
Additionally, the sellers’ attorney must ensure all disclosures are comprehensive and accurate. In New York, sellers are required to disclose any known housing defects that would influence a normal buyer’s decision such as termites, sewer problems or flooding damage that would impact a typical purchase decision, such as termite infestation or flooding damage. Furthermore, attorneys for both sides must work out any disputes over closing costs/transfer taxes/delivery of personal property/possessions during this stage.
An experienced real estate lawyer can be invaluable during the sale process. He or she may provide a home seller checklist or guide that addresses basic steps of selling a house; real estate agents often recommend experienced attorneys they have worked with in the past. Furthermore, when closing time comes around, an attorney can help both parties understand all documents they must sign and how much cash should be brought along to closing day.
Arranging the Closing
Closing occurs when both buyers and sellers fulfill all the terms of their sales contract. Usually facilitated by an escrow or title company, this process includes signing documents, transferring funds, recording them and conducting a final walk-through to make sure nothing has been left behind by either party. A lawyer can provide invaluable help reviewing and understanding all documents associated with a sale to ensure everyone understands their responsibilities as they move through this stage.
Attorneys can be particularly useful when managing complex real estate transactions, such as selling the family home during a divorce settlement. A lawyer can explain the process and draft documents that protect both parties’ interests while also helping negotiate and review purchase contracts that reflect both parties’ wishes.
Real estate agents may also provide valuable assistance, but unlike attorneys they do not owe the same fiduciary obligation to their clients as attorneys do – this means they could potentially have conflicting obligations between selling and buying parties that could lead to disputes during the transaction process. Attorneys, on the other hand, represent clients’ best interests exclusively and therefore should always be chosen when representing their best interests.
An attorney can facilitate the closing process, which typically involves all parties involved: buyer and seller attorneys, an escrow officer from the title company and representative as well as lender’s counsel. If there are any outstanding issues before closing is scheduled to occur, their counsel can ensure they are addressed such as clearing away liens or violations discovered during research by title companies; making arrangements for delivery of possession and personal property and calculating various costs such as taxes and transfer fees.
As sellers at closing are responsible for moving out before the close date, their obligations can often become complex. When this is the case, it’s wise for them to negotiate an post-closing possession agreement with their buyer as soon as possible, ideally at the time they sign their sales contract. This would allow them to stay for an agreed upon amount of time in exchange for daily or monthly rent depending on how long their buyer plans to reside there.
