Choosing to Sell your House by Yourself? Know What Goes into a Real Estate Purchase Agreement3/27/2017 Choosing to sell your home without an agent or broker can save you lots of money, but the process is not without pitfalls. The elements that come together to create a real estate purchase and sale agreement are often complicated, and having competent lawyers in your corner who can draft a solid legal contract can help to prevent a good deal from going bad. A real estate purchase and sale agreement is the contract that is created after acceptance of an offer by both the buyer and seller. Purchase and sale agreements typically include but are not limited to: Description of Property The real estate purchase and sale agreement should state both the common residential address of the property and the full legal description of the property. Any easements or restrictions on the property such as HOA regulations should also be included. Final Sale Price The price may change during negotiations, but the final, agreed-upon sale price must be included in the contract. The purchase and sale agreement should contain very clear language about how and when the purchase price will be paid in full. Earnest Money Deposit When a prospective buyer makes a serious offer, he or she is typically required to put down an earnest money deposit that is usually one to two percent of the purchase price. This deposit is commonly held in escrow until completion of the deal. Closing Date The closing date is also included in the real estate purchase and sale agreement. On the closing date, the transfer of property is recorded with the local government and you will receive the money for the sale of your home. Your attorney will prepare and review closing documents and accompany you to the closing. Disclosures Some disclosures such as lead-based paint hazards are required by federal law, but state disclosure requirements vary. Carosella & Associates’ knowledgeable lawyers in Delaware and Montgomery counties can advise you on which disclosures are required by Pennsylvania law. Title Condition The seller of any property must provide a clear title of ownership to the buyer. Details about the title company you are using must also be included in the contract. Contingencies The sale and purchase agreement should contain detailed information about all conditions that must be met in order for the purchase to be completed. Typically, the transaction may be canceled by either party if contingencies are not met. An inspection contingency allows the buyer to have the home inspected before completing the purchase. If any significant problems are found, the buyer may be able to back out of the deal without losing his or her deposit. A financing contingency requires the buyer to get pre-approved for a mortgage and should specify the timeframe that the buyer has to find adequate financing. A title contingency gives the buyer the right to review the home’s title, and may allow the buyer to nix the deal if liens or issues with ownership are found. An appraisal contingency enables the buyer to cancel the transaction if the appraisal of the property reveals that it is not worth as much as the buyer offered to pay for it. Carosella’s experienced attorneys can guide you through the process of selling your home FSBO and ensure that your real estate transaction goes off without a hitch. This post originally appeared at http://carosella.com/what-goes-into-a-real-estate-purchase-agreement/
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There are many steps involved in selling your home for sale by owner, but preparing a deed is one of the most important elements of transferring ownership. Working with experienced real estate attorneys who can prepare the deed and other documents will ensure that all of your legal bases are covered and the new deed is properly registered and recorded.
Why should I have a lawyer prepare the deed?A deed has specific language that must be included to correctly convey ownership of the property from one party to another. If the proper wording is left out or used incorrectly, the transfer of ownership to the next partly could be deemed invalid, which may likely result in multiple legal claims. Preparing a new deed also requires multiple steps, additional documents, and document standards that are required by all recorders of deeds in Pennsylvania. Having a competent lawyer draft the deed for transfer of your property will ensure that all of these standards and requirements are met. Your lawyer can assist you with these steps, including: Preparing a new deed and recording it with the “Recorder of Deeds” of the county in which the property is located. Determining appropriate fees and transfer taxes. Transferring property requires a transfer tax to the state, county and local municipality unless the transaction is between family members. If it is being transferred to family, a statement describing the relationship must accompany the new deed. A competent real estate attorney will know state-required home sale fees and transfer taxes. Preparing payments. Some counties require several separate checks while others will accept one and disperse payments. Preparing additional documents that must be submitted with the deed, such as a fully completed Statement of Value form. The Pennsylvania Department of Revenue requires that transfer taxes or statements of value must be included with all transfers unless the deed clearly states an exemption. Notarizing the new deed. All parties must sign the new deed in the presence of a Notary Public. Registering the deed before and/or after recording. Some Pennsylvania counties, boroughs and townships still require registration of deeds after recording. Most counties have very specific requirements that must be met when drafting a new deed and all of the documents that accompany it. You may be unaware that deeds and mortgages must include much more than the property’s value, municipality, county and state. There are many small details, such as book and page numbers, that must be cited when referring to mortgage documents. A lawyer who is well-versed in handling for sale by owner transactions will know exactly what is required when crafting a new deed. Knowledgeable business lawyers can also assist you with the creation of other documents and contracts related to the sale of your property and accompany you to the closing. When selling a property for sale by owner, having qualified attorneys on your team can help you avoid costly headaches and save money in the long run. Our knowledgeable attorneys in Montgomery County and West Chester will create a deed that ensures a smooth transfer of ownership, allowing you to move on to your next adventure in real estate. This blog was originally posted at http://carosella.com/preparing-a-deed-for-sale-by-owner/. A trust is an agreement that outlines how property will be managed and held for a beneficiary such as person or entity. There are many types of trusts that serve different purposes, so seeking the counsel of experienced Trusts attorneys is essential to help you decide which type of trust will best fit your needs.
The Goal of a TrustThere are various factors that can help you decide whether to create a trust as part of your estate plan. Some trusts can help you more effectively provide for your loved ones and maximize their inheritance by avoiding probate and reducing estate taxes. Putting assets in trust can also be an important part of business succession planning. Certain types of trusts can also prevent the courts from controlling your assets if you are incapacitated. Trust TerminologyThe grantor is the creator of the trust and has full control and legal capacity to manage or change the trust at any time. The trustee is responsible for managing the property in the trust. If you do not want to be your own trustee, you can name an adult child, friend, or institution to manage the trust while you are alive. The successor trustee manages the assets in the trust after your death or if you should become incapacitated. The beneficiary is the person(s) or organization benefiting from the trust. Beneficiaries do not have to exist at the time the trust is created. Property consists of the assets which are put into a trust, and can include any type of asset, including money, investments, jewelry and real estate. Types of Trusts A living trust or family trust is revocable, which means that it that can be changed or revoked by the grantor while he or she is alive. With a revocable living trust, ownership of your assets is transferred to the trust but you do not have to relinquish control over the trust. When the grantor dies, the trustee gains control of the assets in the trust. This allows your estate to avoid probate so your assets can be distributed to your loved ones right away. A revocable trust does not protect assets from estate tax, but can help your estate avoid probate court. If you are incapacitated by an illness or or accident, a living trust can also allow your trustee to handle your financial affairs without the need for a court-appointed guardian. An irrevocable trust is a trust that cannot be changed or controlled by the grantor once the trust is deemed irrevocable. Assets held in an irrevocable trust are not subject to estate tax after your death. In addition, transferring assets to an irrevocable trust can save on annual income taxes while you are alive. Testamentary trusts are irrevocable trusts created by a will after the grantor dies. People with large estates often use testamentary trusts to reduce estate taxes and to protect property from creditor claims. Life insurance policies included in testamentary trusts are not subject to federal income or estate taxes. Many parents use testamentary trusts to provide for their children, and to ensure that gifts left to the children are not distributed as a lump sum or given to the children at too young of an age. A testamentary trust may also be used to make sure a special needs beneficiary is provided for. Carosella & Associates’ experienced attorneys in West Chester can help you decide which type of trust will benefit your family and ensure that your legacy lives on after you’re gone. This blog was originally posted at http://carosella.com/3-things-you-need-to-know-about-trusts/. |
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