The Residential Purchase Process

Common Legal Issues and Risks When Buying Residential Property

 

The Nash Law Firm, PLLCpresents:

Six Steps to Buying Residential Property

I.        Finding the PropertyII.      The Purchase AgreementIII.    The FinancingIV.     The InspectionV.       The Title CommitmentVI.     The Closing 

I. Finding the Property

• Look on Your Ownor

• Use a Real Estate Agent

 

Looking on Your Own

Reason to look own own:

• MLS listings are available online

• Properties are being sold on other internet based sites (for example, Craig's List)

• Don't want to be talked into a house

Reasons not to look own your own:

• Lack of knowledge necessary to find the right property.

• Lack of understanding of the market and the values of homes.

Using a Real Estate Agent

Reasons to use a real estate agent:

A knowledgeable, experienced agent can better find the right property - will understand the neighborhood, the market and understand common real estate issues.  

Reasons not to use a real estate agent:

If you have already found the property, have researched the neighborhood and understand the market, you do not need a real estate at this stage of the process.

II. The Purchase Agreement

• Condition of the home• Earnest money• Price • Cash at closing• Financing terms• Personal Property• Contingencies• Closing Date 

 

The Test for a Good Purchase Agreement

CAN YOU GIVE THE PURCHASE AGREEMENT TO A FRIEND AND CAN HE/SHE TELL YOU WHAT YOU DEAL IS? 

If you have to fill-in the details, or explain the terms, you don't have a good purchase agreement.  

 Oral agreements, unwritten  assumptions only lead to trouble.

 

III. The Financing

If the purchaser needs to obtain financing in order to purchase the property, the PA must be contingent on the purchaser obtaining acceptable financing.  Without this contingency, if the purchaser is unable to obtain financing, the purchaser would be in default. 

Keys to Financing:• Use local, accountable loan

officers;• Read and understand all of the

documents;• Just because they will give you

a loan does not mean it is a loan that you should take.

IV. The Inspection

In order to make sure the property is in a condition that is acceptable to you, it is recommended that you get a property inspection.  The PA should be contingent on the purchaser obtaining an acceptable inspection.  Make sure the PA provides enough time for the inspection and your review.

Make sure you understand what the terms of the inspection are, what insurance coverage the inspector has, if any, and if there are damage limits if they miss something. 

IV. The Title Commitment

Just like the condition of the property, a purchaser must make sure that the condition of the title to the property is good.  This means you need an owners title policy (not just a lenders policy).  But like all insurance, you need to make sure that you get the right coverage.  

The best way to make sure that you are probably covered is to hire an experienced real estate attorney to review the title commitment before the closing.      

VI. The Closing

The standard closing involves scores of documents.  The temptation is to not read them.  They're just standard documents right?  Wrong!

You have to read and understand the documents that set out your rights and obligations with respect to the biggest purchase of your life!  Millions of buyers have lost their homes and most felt that they were deceived because they didn't understand the documents that they signed.   

How To Protect Yourself

Protect yourself by reading and understanding the process and the agreements you enter into.  You can help yourself by relying on trusted, local experts:• Real Estate Agent• Loan Officer• House Inspector• Title Company• Real Estate Attorney• Tax Accountant

For All Your Real Estate Legal NeedsThe attorneys of the Nash Law Firm ("NLF") will explain to you the documents and protect you from unintended results.   Why the Nash Law Firm?   • Our attorneys all have over 25 years of legal, real estate

experience.  • We are well-known in the Twin City area for their experience

and knowledge.  • We have provided real estate education to thousands of real

estate professionals and attorneys.  • We produce a monthly real estate e-mail newsletter to goes to

over 4000 individuals.  • We offer affordable flat fee billing options.

WE KNOW REAL ESTATE!

 

763-862-6100Website:  http://www.nash-law.com

Twitter:  Steve Nash@minnrealestateFacebook:  facebook

Blog:  http://minnrealestateblog.wordpress.com/

2175 Northdale Blvd NWCoon Rapids, MN 55433