- What is the contract of sale?
- What is attorney review?
- Home Inspection
- Title Insurance, Title Searches and Survey
- Mortgage costs
- Issues that may be addressed during attorney review
Our firm is committed to providing the best possible individualized service to all of our clients. We represent clients in all commercial and residential real estate proceedings and transactions. We are familiar with the property issues which may arise such as surveys, title examination, loan documents, deeds, leases, easements, access problems, etc.
We have the legal tools in place to handle a land sale transaction from start to finish. Our services include the preparation of all of the necessary paperwork for a purchase or sale of land, so our clients can concentrate on their long-term goals for the transaction.We understand that buying or selling your home will be one of the largest financial transactions of your life and that it can be a stressful process. We strive to make the transaction as painless as possible by taking the time to answer all of your questions and concerns. Below are some commonly asked questions about buying and selling of property:
A contract of sale is an agreement for the purchase and sale of real
estate. The contract is usually prepared by your real estate broker and
is a standard form contract, which is submitted to your attorney for
Following the signing of the initial contract of sale by both parties, you will have three business days to have the contract reviewed by their attorney. During this time period, your attorney will review the contract and prepare what is called a rider or letter addendum to the contract. The rider will create additional provisions to the contract, addressing any issues that have not been already addressed by the initial contract.
If representing a Buyer, our firm would try to extend the deadlines for
your mortgage commitment and inspection report, as well as giving you
the most flexibility to get out of the transaction, if your inspection
report is unfavorable or if you are unable to secure a mortgage.
Once the attorneys and their clients accept each other’s newly added terms, the attorneys will sign off on the final rider or addendum and inform all parties that attorney review is concluded. All time periods (for the mortgage contingency and inspection results) will start from this date (not the date you signed the initial contract with your broker).
There are several things that you as a (buyer) are responsible for
between attorney review and closing:
Generally a structural home inspection is recommended if you are buying a home not required but is generally recommended if you are purchasing a home. It will provide you the opportunity to accompany the inspector around the property and learn recommended maintenance for your new home. This will give you as the buyer or seller the opportunity to learn what work if any may need to be done. Note that depending on the age and condition of your building, you may choose to get inspections in the following areas: termite radon, septic, well, home heating oil tank, and/or lead paint. This is an out of pocket expense that you pay directly to the inspector.
As a buyer, you have 10 days to
complete the inspection and submit the results to the seller’s attorney.
You should schedule an
appointment with an inspector immediately following attorney review.
Any defects will be submitted by
your attorney for the seller’s attorney to address, usually with a
credit at closing or an arrangement to repair of the defect.
Title Insurance, Title Searches and
As a buyer, you will be required to purchase title insurance for your property, which is an insurance policy that covers your ownership interest and the mortgage interest of your lender. This will show any judgments or liens against the parties or the property itself, including mortgages for the seller or tax liens.
Note: your mortgage company will generally require you to have a survey done for the property. Title insurance, title searches and the survey costs are paid at closing.
Mortgage closing costs vary by the mortgage company because each mortgage company may have specifics costs and fees. It would be wise to speak to your lender, banker or mortgage broker about their specific costs and fees. Some companies collect fees upfront and others are paid at closing.
Generally, attorney’s fees are paid at closing.
Issues that may be addressed during attorney review:
· What is included in the sale price -- draperies, carpeting, light fixtures, heating oil, appliances, etc.;
· The amount of the down payment;
· The date of settlement and possession date;
· Contingencies to the sale--inspections or required improvements;
· Whether the transaction is an “As-Is” deal.
· Once the closing is scheduled, you will provide a payoff statement showing the balance due on any mortgage you (as seller) have, to pay the loan in full.
· Depending on the type of property, you (as seller) may be required to provide a Certificate of Occupancy for the property. Also, a Smoke Detector and Carbon Monoxide Certificate will have to be obtained through your local fire department.
What are my expected closing costs?
· The biggest closing expense will be paying off any existing mortgages.
· If the services of a realtor, the real estate commission will be due at closing and paid out of the proceeds.
· Any taxes and condo maintenance will be adjusted at closing.
· After paying your attorney’s fees, the balance of the proceeds will be provided to you.Top of Page