A real estate purchase and sale agreement is the contract that is drafted after acceptance of an offer by both the buyer and seller. Whether you are selling or making an offer on a property, it is essential to engage the counsel of experienced real estate attorneys to make sure you have all your legal bases covered and ensure that your interests are protected during the transaction.
The specifics of purchase and sale agreements can vary by state, but usually include the following: Final Sale Price The agreed upon purchase price is included, in the agreement, but may change during negotiations before the closing date if issues arise such as the home inspection turning up a problem. Earnest Money Details The purchase and sale agreement includes information on the earnest money deposit, a small percentage of the purchase price which shows that an offer is serious and made in good faith, and is commonly held in escrow until completion of the deal. Experienced contracts attorneys can help create a document that will ensure that it will be returned to you in case the deal goes south. Closing Date On the closing date the transfer of property will be recorded with the local government and the seller will receive the money for their home. A knowledgeable attorney will prepare and review closing documents before you sign and assist you at the closing. Title Condition and Information about Your Title Insurance Company The purchase and sale agreement will state that the seller must provide a clear title of ownership to the buyer. Information about your title company will be also be included in the contract. A seasoned real estate attorney can assist you with choosing a good title company. Contingencies Contingencies are conditions that must be met in order for the purchase to be completed, and may allow the contract to be canceled by either party if they are not met. Always check with your attorney to make sure all the necessary contingencies are included in the contract, such as:
An addendum is any additional request from the buyer to the seller that is not included in the actual purchase and sale agreement. Skilled business lawyers can also advise you on which addendums to include, such as asking the buyer to pay part of the closing costs. Engaging the services of experienced attorneys will make sure your real estate sale and purchase agreement protects your interests in a real estate transaction. At Carosella & Associates we have knowledgeable and qualified lawyers practicing in Montgomery, Chester and Delaware counties who can help you through the process and realize your dreams of buying or selling a home. #RealEstateLawyers, #RealEstateContracts, #realestateagreements
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There are particular challenges and benefits when it comes to buying a “for sale by owner” (FSBO) home. Whether you are a first-time homebuyer or a seasoned property owner, having experienced real estate a looking out for your interests and guiding you through the purchasing process can save time and help you avoid costly pitfalls that may arise during the transaction. Here are just a few of the pros and cons of buying a FSBO property: Pros 1. Purchasing directly from the homeowner can help you negotiate a significantly lower purchase price and reduce fees and closing costs. Commissions charged by real estate agents are paid by the seller of the home, so sellers often include the agent’s commission in the price of the property. 2. Having more direct contact and rapport with the homeowner can lead to smoother negotiations, but it is very important to enlist the help of qualified real estate or contracts attorneys who will thoroughly peruse the sales contract to ensure it contains contingencies that will enable you void the contract if issues arise during the home inspection or appraisal. Your attorney can also determine if there are any liens or other problems that prevent the property from having a clean title, and can negotiate with the seller to determine who pays certain costs such as the title transfer fee and transfer taxes. 3. You may learn much more insider information about the house and neighborhood when buying a house directly from the owners. The seller may be able to indicate many little-known perks about the area that a real estate agent would not be familiar with, such as beautiful parks, stores or restaurants, and can also let you know which places to avoid. Cons 1. Both buyer and seller are often inexperienced in many of the details and processes involved in a real estate transaction. The paperwork can be time-consuming and difficult to understand, which can slow the process and lead to headaches that could have been avoided. Hiring a qualified real estate attorney will help you make sure that any and all documents governing the transaction are legally valid. 2. Misunderstandings between you and the seller can easily lead to a deal falling through and even legal action. Some homeowners may have an inflated or totally unrealistic idea of what their home is worth, and emotional attachments may also make it hard for them to negotiate price in good faith. 3. Not all homeowners are going to be honest, especially about things that may lower the value of their home. Enlisting the services of a licensed appraiser and having a formal property inspection to uncover any issues that need to be addressed is well worth the cost. Real estate agents usually facilitate this, but qualified attorneys should also have appraisers and home inspectors they can recommend to provide these services. A skilled attorney should provide support and legal counsel from your first offer to closing on the property. At Carosella & Associates we have experienced real estate and business attorneys who practice in Chester County, Montgomery County and Delaware County and who can help make the process of buying FSBO a stress-free experience. #RealEstateLawyers, #BusinessLawyers, #FSBO, #ForSaleByOwner |
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May 2023
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