For most people, purchasing your first home is a huge life milestone. It is a very exciting time in anyone’s life, but you also need to know what to expect when making what will probably be the biggest purchase you will ever make.
One of the first things you need to know is what kind of home are you looking for? This can vary from a private house, condo apartment, or apartment. What can one afford? What are the surroundings like? Are the schools good? Are you going to be close to loved ones if that is something you are looking for.
In some cases, the process can be quite overwhelming. Choosing the right real estate attorney will give you the proper answers and even help guide you through the tedious process ahead of you.
Once you know what kind of home you are looking for, what happens next? In most cases the purchaser makes an offer to the seller. If the offer goes through, both parties get the broker and lawyers on board.
This is where a Contract of Sale is written up. The Contract of Sale acts as the legal agreement between two parties concerning the terms of purchase of transfer of real estate property. The purpose of this contract is outline what both parties are entering into the buy/sell/transfer property. You might be asking yourself, ‘how is this different from a deed?’ A deed represents the actual transfer of a property from one party to another, or the final steps in the transaction.
When a Contract of Sale is signed, a down payment is made, and held by the sellers lawyer. Generally these down payments are ten percent of the purchase price, and is how the seller and buyer know they are serious about the transaction.
The seller must also sign the contract of sale, meaning the purchaser must find the needs to make the best efforts to obtain financing to afford the said property. This is when having your real estate lawyer onboard will come in handy. They can provide you with the right advice, and your lawyer should order a title report, which will indicate who owns the property. As long as the seller doesn’t have any outstanding violations and everything else is in order legally, the purchaser’s mortgage lender is ready to give the purchaser the money to buy the home, the closing can be arranged.
When you are purchasing a property, you won’t be expected to know everything about what are getting into. Asking your real estate attorney should be a no brainer, if you are unsure of any aspect of the transaction.