Buying or selling – Commercial or residential

RESIDENTIAL REAL ESTATE

Your home purchase or sale will typically involve signing of the biggest contracts you have ever signed in your life. The “standard” provisions are not always standard and it is smart to have a qualified professional sit down with you and explain exactly what you are getting in to. Here are some basic tips.

SELLING YOUR HOME.  Once you sign a contract to sell your home you need only have your lawyer prepare a deed, an affidavit and a tax form for you to sign.  They are sent to the closing attorney for the buyer and you do not need to go to closing.

After the sale is complete the buyer will record the deed in the courthouse and cut a check to you for any proceeds on the sale.  Typically you will need to sign a HUD disbursement statement at that time – approving of the amounts.

If your sale is tainted by judgments or liens or other problems with the ownership of your property then you will need additional legal help to clear title.  If your closing date and moving date are different you can work out lease or other agreements to ease the pressure.  Your lawyer can help.

BUYING A HOME.  The contract starts the process and you (the buyer) take the contract to the bank for a loan.  Once approved the bank sends a list of requirements to your closing attorney who must complete those requirements and have all the documents signed by you at closing.

Typically the bank will want a survey of the property, a search of the court records to be sure the seller has clear title, a termite inspection, an appraisal of the value of the property, proof that the you have hazard insurance and various other things necessary to reassure the bank that you are getting clear title and that the house is worth at least as much as the bank is lending you.

At closing you sign loan papers including a deed of trust, a note and various other documents related to financing including a HUD statement that explains where all the money went.  In the HUD statement the closing attorney lists how he made sure that the seller’s mortgage was paid off and that all costs related to the closing were paid out of the bank loan. If more money is needed to close then you will be expected to bring it to closing in a certified check.

You monthly mortgage payment may be higher than the loan papers show because some costs are collected as part of the mortgage payment.  Typically your real estate taxes and your homeowner’s insurance are collected each month as part of your mortgage payment.  Then the bank pays the premium on the insurance when due and pays the taxing authority when taxes are due.

* Often people confuse the date of closing with when you can move.  You are not compelled to use the closing date- which may change for numerous reasons. You can agree to early or late occupancy so long as you sign the appropriate agreement.