April 11, 2022
Tips for Successful Residential Purchase Transactions
When buying residential property, there are so many decisions to make and considerations to weigh, that it can be easy to overlook something important. A lawyer with experience in residential purchase transactions can help you protect your interests during the process and make sure you get what you expect from the purchase. Here are some tips for successful residential purchase transactions that every buyer should consider before signing on the dotted line.
Work with a Realtor You Trust
Trust your Realtor. Be sure to work with a Realtor who will be able to help you through every step of your purchase and close on time. Your Realtor’s knowledge, guidance, communication, and negotiation skills will play a critical role in helping you complete your purchase transaction. If you are buying a home from an individual seller, you must understand that many states have laws that protect buyers against sellers or individuals acting as agents for sellers. These laws are called Real Estate Closing Laws or Real Estate Settlement Procedures Act (RESPA) laws. For example, if you find a property online and want to buy it before seeing it in person, ask your Realtor about any RESPA laws that may apply.
Understand the Necessary Legal Steps
It’s important to know that before you even begin considering purchasing a home, some legal steps need to be completed. Most people assume that they just need to sign a contract with a real estate agent or hire an attorney. However, there is much more to it than that. Closing attorneys review all of your paperwork and make sure everything is in order and signed correctly. The closing attorney is required by law to be present at closing; although their presence isn’t always necessary, as long as they have reviewed all of your documents beforehand. Closing Attorneys also check to make sure your deed has been properly executed, which means they verify that each party involved has signed off on all pertinent information.
Reach Out to Experts
You should always consult with a lawyer before completing a real estate purchase no matter what you do. You’ll also want to get help from your accountant and financial adviser to ensure that you have enough money saved up to complete your purchase. You may also want to hire an appraiser or inspector to examine any property you plan on buying. The more information you can gather ahead of time, the better prepared you will be when it comes time to finalize your deal.
Know What Can Go Wrong
There’s an old saying, Success has many fathers, but failure is an orphan. What that means is that failures have no one to attribute them to but themselves. If you want to have a successful real estate closing and transaction, you need to know what could go wrong at every stage of the deal and plan how you’ll avoid those pitfalls. The best way to do that is by researching past transactions and speaking with people who are knowledgeable about residential purchase transactions. You can also ask your attorney questions about things you don’t understand, like property lines or contingencies. That way, when problems arise in your transaction, you won’t be surprised or caught off guard—you’ll be prepared!
Do Not Assume Anything, even if it Seems Simple
This can be one of your biggest issues in a residential purchase transaction. As a buyer, you may assume that because you have already agreed to purchase a property, it is an absolute certainty that you will proceed with the deal. However, nothing is certain until a closing attorney or escrow agent provides written confirmation that funds have been deposited into an escrow account and that all documents are signed. Until then, either party may back out of a residential purchase transaction without penalty at any time. The other party should not take your silence as acceptance; confirm in writing if you do not hear from them within a reasonable amount of time. The Best Defense is a Good Offense: When entering a residential purchase transaction, always make sure you know what your options are before proceeding. It’s better to spend some money on legal advice now than risk losing thousands later by having no plan B available when something goes wrong.
Follow Up, Follow Up, Follow Up
After agreeing to purchase a property, follow up with your real estate agent, your loan officer, and your home inspector at least twice—if not three times—to make sure everything is proceeding as scheduled. If you’re eager to finalize a deal and don’t want it to fall through, take these extra steps and put in these extra work hours. It will be worth it in the end!
