The process involved in buying a house isn't all that rosy. There are many steps to follow, and it's easy to get overwhelmed. Handling legal paperwork is probably among the least exciting because it entails a lot of reading and understanding. If you understand the terms in the purchase agreement, you'll keep mistakes to a minimum during inspections, negotiations, and closing. A real estate lawyer will ensure that your documents are clear and meet your expectations. Here are some documents they'll review for you.
1. Earnest Money Check
Earnest money is a down payment a buyer makes to show the seller that they're serious about the transaction. The amount may vary depending on the contract and can be used as a bargaining chip during negotiations. A lawyer will analyze the amount to determine if the offer is reasonable. If it matches what's needed for the purchase, it'll be deducted from the down payment at closing time. Before that, it'll be held in escrow to ensure it's only used for a home purchase. If something goes wrong and you decide not to buy or someone else outbids you for the property, a real estate lawyer can help you get your money back.
2. Seller's Disclosure Statement
This is a document given to a buyer by the seller. It includes information about the property you're buying, such as renovations, damage, and safety hazards. This way, you'll know if the property has a leaky roof, faulty plumbing, insect infestation, mold growth in the basement, or a poorly insulated attic. A disclosure document is vital because it will affect your decision to purchase the property. Hiring a lawyer is a good idea because they'll help you evaluate this document before signing any paperwork. If there are any major safety hazards, they'll help you get out of the contract without losing your earnest money deposit or incurring other penalties.
3. Sales Contract
A sales contract is an agreement that legally binds you and the seller and clearly states the terms and conditions of the purchase. These terms encompass what happens in escrow, such as who pays for what fees and taxes. A real estate lawyer will review the sales contract before closing time to ensure everything is in order. They'll also handle negotiations between you and the seller if there are issues with the contract or something needs to be changed.
If you intend to buy property, you'll come across many purchase documents. A real estate attorney can help you understand the paperwork.
Share8 April 2022
