In order to purchase or sell real property you must first enter into a written contract. A lawyer is then needed to review and approve the contract. They will make sure the parties to the contract are the ones buying or selling the property. They also make sure the property being sold is adequately identified and that the use of the property is specified in the contract, such as single family residential.
An important element for the purchaser is the mortgage contingency paragraph. A lawyer can explain what is needed to meet the contingency within the time frame set out in the contract.
If representing the purchaser he should recommend an owner’s policy of Title Insurance. The lender’s attorneys represent the bank and not the purchaser or seller. Most often a mortgage commitment will require Title Insurance in the amount of the loan with the lender as the insured. This does not insure the purchaser’s interest in the property.
If representing the seller the lawyer will review title to make sure it is marketable and/or insurable. This protects the seller who is warranting title to the property.
Structural, Pest and Radon Inspections should also be made. If there is a problem with any of these it is important to be represented by an attorney who can advocate on your behalf so as to resolve any issues.
If you are selling property, it is important to have an attorney who will prepare the deed and other necessary documents in order to transfer title to the purchaser. Conversely, if you are purchasing property, your attorney will review the closing documents and title to ensure you are being transferred good title free of any liens or encumbrances.
At closing the attorney will provide a closing statement which will include the costs and credits adjusted as of the date of closing for such items as taxes, water, sewer, fuel etc.
As you can see, there are a lot of verbose elements, factors and circumstances that arise during the transaction of real property. Buying or or selling a home can and often is a stressful process. This is why you should be represented by an attorney who will be there to advise accordingly.
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