Residential Real Estate
Recently, mortgage rates have been at their lowest level in 40 years. Lower mortgage rates can save you thousands of dollars over the life of a mortgage loan. Many people are using these lower rates as an opportunity to enter the housing market or to move into a larger home. If you are a first-time buyer or have decided to "trade up" during this period of relatively low rates, contact an experienced residential real estate attorney to assist you in negotiation and closing your transaction. Good legal advice is the best way to protect yourself, whether you are buying, selling or developing real estate.
Real Estate Frequently Asked Questions:
- Q: What is real estate?
- A: Real estate (also called real property) refers to land and things attached to land. For most consumers, real estate consists of their home and the lot surrounding it. commercial real estate may include factories, equipment, and other facilities. In addition to buildings and equipment, resources existing on (or under) the land, including mineral sand gas, are part of real estate. Some of these components of real estate can be sold separately. For example, a farmer could sell the mineral rights to a specific field to a mining company while retaining the right to farm the surface.
- Q: What are deeds for?
- A: Deeds indicate, and are generally required to transfer, ownership of real estate. A deed contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. The differing kinds of deeds, such as quitclaim deed, a grant deed, or a warranty deed, transfer different interests. For example, a warranty deed assures the buyer that the seller will defend his title to the property from all other persons. A quitclaim deed conveys only whatever title the seller owns, with no warranty against claims of others. A warranty deed provides the buyer with the most legal protection.
Glossary of Real Estate Topics:
- Appraisal:
- an appraisal is the estimate of value of real property made by a third party not involved in the transaction, usually comparing the sales price to the value of similar properties in the area. Mortgage lenders usually require an appraisal before they will make a loan.
- Assessments:
- an assessment is a charge for improvements completed by the local government that are beneficial to adjoining property (such as sidewalks or road work). The assessment is each benefited property owner's proportional share of the cost of the improvement.
- Deeds:
- Usually deceptively short, a deed is an unassuming piece of paper that has a big legal impact. A deed indicates that the transfer of ownership of real estate, and no real property transaction where ownership transfers is finished until the deed is delivered to the buyer. A finished deed includes the names of the buyer and seller and the property's legal description. The deed is signed by the person transferring the property, and may make that person responsible to the buyer for other claims against or conditions on the property. A knowledgeable real estate attorney can review the deed to ensure that it is accurate and property executed.
- Deed Requirements:
- A deed for property must always be in writing, and it must follow state laws for property transactions. Different states may require different deed language or forms or even paper sizes, so it's important to make sure the rules are followed. While not strictly required, it is a good idea to record a deed to make the ownership change a public record.
- Home Inspections:
- Buying a home can be stressful and time-consuming. Obtaining a home inspection can take some of the worry out of the process. An independent home inspector will give a buyer a complete picture of the condition of the property he or she is considering buying. Most houses are not perfect, and the inspector's detailed report gives the buyer an unbiased evaluation letting him or her know what needs work now and what will probably need work in the near future. obtaining a home inspection and reviewing the results with an experienced real estate attorney can put a home buyer In the best position to negotiate his or her purchase.
- The Inspection:
- the type of inspection that a buyer needs depends on many factors. Of course, every buyer should make his or her own basic inspection. A buyer should also obtain a professional whole-house inspection by a reputable person to uncover defects that may not be readily apparent. If the buyer is using an FHA or VA loan, a third, somewhat less thorough, inspection occurs at the time of the appraisal. The appraisal required by the lender is not as thorough and focuses on the value, not the condition, of the property. It does not substitute for an inspection.
- What to Expect at Closing:
- A closing, or settlement, is the meeting during which ownership of the property is officially transferred from the seller to the buyer. The buyer and the seller, their attorneys, both real estate sales professionals, a representative of the lender, and the closing agent typically attend the closing. The closing involves settling any open issues, balancing and verifying an often-complex closing statement, and signing all documents necessary to complete the transaction. An attorney with experience in closing real estate transactions will advise you at closing to ensure that your rights are protected.
Closing Costs
Closing costs are one of the least-understood aspects of the home purchase procedure. Although a good closer will take time to walk a buyer through the numbers, an experienced attorney will provide additional insight and verify that the costs are being appropriately allocated between the buyer and the seller.
Robert D. Erney can represent you in the confusing process of purchasing residential real estate.
