Buying and selling your house maybe the biggest financial decision you make. But often we do not understand the laws that regulate property transactions. According to a 2005 survey by Freddie Mac of 2,031 homeowners, six in 10 homeowners wished they had a better comprehension of their mortgage provisions and details. Spend some time to comprehend the laws that manage property transactions before you sell or purchase a home.
What Is the Difference Between a Warranty Deed and a Quitclaim Deed?
A deed is a legal document that outlines the conditions of a transfer in ownership of land. There are two main deed types used in property transactions: the warranty deed and the quitclaim deed. The warranty deed is a legal document which guarantees that the seller is the real proprietor of the home and transfers ownership to the buyer. If the vendor’s claims aren’t right, the warranty deed provides protection to buyer, who can claim reimbursement. Quitclaim deeds are not as secure. They do not guarantee the seller is the rightful proprietor, and also the buyer does not have any legal recourse when problems arise with the real estate name.
Is a Purchase Offer Legally Binding?
A purchase offer is a legal document that contains the details of a buyer’s offer to get a property. The offer is only legally binding if both buyer and the seller are in agreement and have signed the record. Usually, there are several offers and counteroffers before a home is sold. A purchase offer will usually include a precise description of the property and the fixtures, the price offered, funding details, home inspection reports and a description of the penalties for breaking the purchase offer arrangement.
What are the Legal Steps to Purchase Real Estate?
The specific steps, forms and documents required to purchase property differ from state to state, but the overall process is comparable. Once a price has been agreed the buyer will usually prepare an Agreement for Purchase and Sale of Real Estate. Both parties may then signal an Affidavit and Memorandum of Agreement for Purchase and Sale and document it with the public records division of this county. Sometimes the buyer may utilize an escrow agent to pay the price of the property. This service is used to protect the interests of the buyer and seller and guarantee both parties are happy with the trade before the price of the house is compensated. The seller will then order a Title Certificate and Commitment for Title Insurance to establish that he is the lawful owner of the house. If the house is held as collateral for loans or mortgages, lenders need to provide approval in writing for the sale to continue. The buyer may then consult the local property tax collector and zoning office to confirm land taxes have been paid and the intended utilization of the home is authorized from the property zone group. If everything is so the purchase and the purchase price was paid the sale can be recorded with the county recording section.