10 May Wrapping Your Head Around the Legalities of a Real Estate Transaction
Executing a real estate transaction is so much more than just putting up a For Sale sign on the lawn. Those who attempt to go at it alone realize one thing very quickly – it comes with a lot of paperwork. Over the years, the standard forms have evolved. Today, the purchase and sale agreement is loaded with clauses that protect both the buyer and seller. Essentially, in the end, you will need the help of a lawyer to finalize the deal and an experienced real estate agent who has the knowledge to ensure your bases are covered.
Signing a real estate agreement is a very serious undertaking. Once both parties have finalized the documents, the purchase and sale agreement becomes a binding contract. But don’t be intimidated by the process at all. As a consumer, you have the right to ask questions before signing. Never be afraid to clarify concerns or request a little extra time to review a document. Your real estate agent’s job is to explain each clause and keep you informed as you go.
Besides your real estate agent, you will most likely deal with a lawyer and a mortgage lender to complete the transaction. Preparation is key in making certain everything goes as planned. Touch base with your mortgage lender well in advance to find out what kind of supporting documents they will require from you before making the purchase. The more organized you are, the quicker you will receive your approval and be able to waive your conditions.
Just before closing, once you arrive at your lawyer’s office, you will be met with another large pile of paperwork. This is where it all comes together. Your lawyer is required to satisfy the last remaining conditions from the mortgage lender, guarantee the title is transferred to your name, and allocate your funds towards all the proper disbursements. Communicate with your lawyer as early as possible to avoid any last-minute surprises. Believe it or not, there are legal issues, such as a lien on the home or problems with the property survey, which can throw a wrench in even the most straightforward real estate transaction.
Aligning yourself with the right professionals who will always look out for your best interests is the best way to get the deal done right from start to finish.