The following are real estate legal questions and answers.
For more information on real estate law contact a real
estate attorney, real estate agent or mortgage broker
in your area.
Question: Should I work with a real
estate agent? A real estate lawyer? Others?
Answer: There are professionals who can
help you with the purchase of a home and offer direction on
what you should consider:
- A real
estate agent can advise you on the marketplace
and what is available in your price range, as well as help
you to consider aspects of a home which may be important
to you (such as nearby schools, shopping, and commuting
options)
- An accountant or mortgage loan officer
can help you determine what kind and amount of mortgage
payment you can afford and alert you to the estimated property
taxes which would be owed annually. A loan officer can also
help you pre-qualifying for a real estate loan.
- A homeowners insurance agent can provide
information on the amount, type and cost of coverage you'll
likely need
- Moving companies. It can be costly to
move your worldly goods from one point to the next, so check
with full service as well as rental companies.
Question: What is the difference
between a real estate broker and an agent?
Answer: A real
estate broker is generally a person or a company holding
a license to represent parties in real estate transactions.
A real estate agent is either a broker or someone who works
under the umbrella of a broker's license. So a broker might
be one of the nationally-recognized brokerage firms, but the
agent would be the one who is actually working with you.
Question: Should we consider buying
a home in foreclosure?
Answer: Purchasing a home
in foreclosure often appears to be a good value, but factors
outside of the price need to be considered:
The purchase of a foreclosure often is a "cash only"
sale
Can you view the actual condition of the home inside and out
before placing a bid? The home may be in need of extensive
repairs driving up the actual cost of the home.
Are there liens for taxes or mechanics liens that the winning
bidder will be responsible for?
Is there a redemption period for the previous owners? If so,
how long do they have the ability to buy the house back before
you can move in?
Question: What questions should
I ask when looking at homes?
Answer: Many of your questions should focus
on potential problems and maintenance issues. Does anything
need to be replaced? What things require ongoing maintenance
(e.g., paint, roof, HVAC, appliances, carpet)? Also ask about
the house and neighborhood, focusing on quality of life issues.
Be sure the seller's or real estate agent's answers are clear
and complete. Ask questions until you understand all of the
information they've given. Making a list of questions ahead
of time will help you organize your thoughts and arrange all
of the information you receive. The HUD Home Scorecard can
help you develop your question list.
Question: What is a purchase offer?
Answer: A purchase offer or agreement contains
all the details of the offer to purchase a piece of property.
An agreement is binding only once the document has been agreed
to and signed by the buyer and seller. Often in the purchase
of real estate, there are a number of offers and counter offers
until an agreement is reached.
Items and conditions that are often included in the purchase
offer include:
- Description, legal and common, of the property
- Purchase price
- Earnest money
- Features and fixtures which are to remain
- Home inspection results
- Anticipated financing
- Closing date
- Final inspection and move-in condition
- Penalties for breaking the offer
- Response time to accept the offer
- Obtaining clear title to the property
- Clean inspection report
Question: What good is title insurance?
Answer: A title search and the issuance
of title insurance
means the ownership of the property can be cleanly conveyed
to the new owners. During the search, the history of the property
is researched verifying that all previous claims or liens
have been satisfied, allowing a clear title to be issued.
If any claim is overlooked, the title insurance protects the
owner from the claim. Remember that if it’s not in writing
on a real estate deal, it’s not enforceable.
Question: Why is a deed required?
Answer: A deed transfers
ownership of property from one owner to the next. Deeds
are recorded in the county where the property is owned. There
are three types of deeds:
- Full covenant and warranty deed – which guarantees
no other person owns or has claims against the property
- Bargain and sale deed – used in some states but
does not guarantee that the property is free and clear of
any claims
- Quit claim deed – transfers interest in a piece
of property from one owner to the next. A quit claim deed
provides no guarantee from other interests or claims
In some states, a deed of trust is used instead of a mortgage.
If there is a mortgage on the property, the deed references
the lender. The name of the owner is put on the deed only
when the loan is paid off.
Real Estate Lawyers.com provides a nationwide listing
of real estate lawyers, mortgage brokers and real estate agents
to represent you in your real estate transaction needs. Simply
type in your zip code to find the right real estate professional
near you.
Find
a Real Estate Attorney
|
