Real Estate

RESIDENTIAL REAL ESTATE
Buying or selling a home may involve the biggest contract you ever sign. A review of the “standard” provisions is important. Have a qualified professional review the documents before you sign them.

POINTERS ON SELLING:
The Contract: Review carefully any contract. While it is called "standard" it will often bind you to terms and conditions you may not want or understand. For example:

Does it allow you to sue the buyer or are you stuck with mediation if there is a dispute?
Does the buyer get to make a home inspection? Can he get out of the contract at that time?
What are the deadlines?
Is the purchase conditioned on the buyer getting financing? Is it "reasonable" financing or is it tied to a particular interest rate or terms?

This is often one of the biggest contracts you will sign. Consider having it reviewed by your lawyer before committing yourself.

The Documents: The buyer will do most of the legwork on a typical closing. You need a lawyer to prepare your closing documents including a deed, signed by you and notarized. You will also have to sign some affidavits confirming all work on the home has been paid and confirming IRS information. You may have to provide information on any mortgage you have on the home so they can confirm the balance and pay it off at closing. You may need to sign for your proceeds. Do you want them sent by check, wire transfer, etc. You may need to sign some other documents as well including the settlement statement that explains how the money was applied. You will not need to be physically present at the closing. In fact, you can often sign these documents in advance.

Difficulties: If the buyer finds any problems with the property, an unpaid judgment or lien, an unrelated claim that is not yours, or any other problem, then the buyer will task you with clearing the title. The lawyer who drafts your documents may be able to help you, depending upon the problem, but each case is different.

The Settlement: The buyer will provide the purchase funds to his lawyer or settlement agent. Often this will be a combination of his bank loan and other money he brings to closing. You will receive those proceeds after the settlement agent a) pays off your mortgage, b) pays your real estate agent, c) pays off any unpaid taxes or liens on the property d) deducts charges for your lawyer, the court release fees, and any other costs you are obligated to pay under the contract. The balance will go to you along with a copy of the settlement statement.

Consultations: A real estate contract may be among the most expensive agreements you ever sign, with bank charges, realtor commissions and numerous other fees. For your sale and purchase to work out, we recommend you consult a good lawyer before and during the transaction. Our office does not charge for most initial consultations.

BUYING A HOME:
You talked with your realtor, friends and family about your new home purchase. Now it is time to think about these items:

How should you title the home to make sure it goes to the right people if you die or other problems arise?
Can you comfortably move into the house on the closing date? If not, have you made arrangements for you and the sellers moving in early or late?
What are your deadlines for getting your financing? For closing?
Does the contract allow you to sue if there is a default or does it make you go to mediation?
Does the contract allow you to do a home inspection? If so, what are your options if you find something seriously wrong?
Are there registered sex offenders in that neighborhood?
Is there a homeowners association or neighborhood covenants that might restrict how you use the property? Perhaps keep you from grilling out back, parking your RV on the street or building a fence.
Have you shopped around for the best financing? Do you understand the terms of your loan and your mortgage.

ADVICE: Sit down with your attorney early. Ask about these items and review listing agreements, contracts and lending documents before problems arise. Choose your settlement agent carefully.

You have the right to choose who represents you at closing. Neither the bank nor the seller can force you to use a particular closing agent.

Getting expert help early makes it easier to prevent a problem than to fix one later.

The Law offices of
PAUL BUCKWALTER
Brandermill Trade Center
13509 East Boundary Road, Suite E
Midlothian Va, 23112
804/744-8744
paultb@paulbuckwalter.com