Avoid Legal Mistakes
Because there are many legal issues to consider, your first step is to consider choosing reputable and experienced professionals to represent your interests. When selecting your real estate agent, ensure that you find someone who has extensive experience with the process. They should also refer you to a local real estate lawyer who can ensure your interests are protected. A residential property real estate transaction can seem to encompass thousands of details, and it is imperative that you educate yourself as much as possible to the aspects of these convoluted procedures. The issues pertaining to real estate law are specifically intricate and can range from fairly common sense topics all the way to minute details that if handled improperly could explode into enormous problems.
In real estate sector generally the legal mistakes are made by the new comer in the industry. They don’t have complete knowledge about real estate laws and they start investing in commercial and residential properties for investment, which causes them to suffer from legal complications later on. The first legal mistake made by the real estate investors is that they don’t check whether the developer of the property or even the property it self is registered with local regulatory authority or not. At times, they’ll just buy the property and then come to know that the developer was not registered with local regulatory authority or the property is not registered. Due to this they have to face some serious problems.
Another mistake is not reading the contract properly and not maintaining its copy with them. A lot of times certain disputes take place between the buyer and seller or the tenant and the landlord, and these issues can be resolved legally with the help of the contract. The one having no copy of the contract has nothing as his defense.
Home buyers have the right to add a survey clause to the real estate contract on the home they wish to purchase. When this home is yours, you should be aware of the implications of this clause. Your current survey may no longer be up-to-date if you have had a swimming pool built, or an addition added, since the survey was drawn up. If your survey is not up-to-date by these standards, the buyer may request an updated survey. The home seller may be required to bear the cost to have a new survey prepared. The cost for this process typically runs anywhere from $700 to $1,000. This is $700-$1,000 less that you will net for your home.
Minor or Major Mistakes
Legal mistakes can be relatively minor, such as the improper wording of a phrase, or be major such as negligence to protect you from fraud, embezzlement or other forms of damaging behaviour on the part of the buyer.
One of the primary causes of legal errors can be the home inspection clause and the survey clause. If the wording of these clauses is not specified very clearly, a buyer who has changed their mind can back out of an otherwise satisfactory offer. In the case of the home inspection clause, the findings of the inspection which may indicate only a minor flaw that can be remedied with a few hundred dollars can be cause for walking away; and in the case of the survey clause the buyer can demand that the seller spend a thousand dollars or more on completing a totally new survey of the property.
The best way to protect yourself against legal mistakes is to be educated as to what it is the lawyer is actually doing, and to carefully read and understand every word of every document prior to placing your signature on it. Some sellers have found that lawyers practicing with larger, more established, reputable law firms tend to commit fewer mistakes and the ones that do occur are more easily remedied as the lawyer has a greater level of resources to call upon to assist.
Some real estate transactions have fallen through because of the wording of the inspection clause. This clause previously stated that the buyer has the right to rescind their offer if they were dissatisfied with the outcome of a home inspection. In some cases, this was used unfairly against the seller when a minor repair issue would give the buyer a legal loophole to their change of heart. Meanwhile, the seller lost both time and money because of this technicality.
By being aware of these and other legal issues, and by seeking advice from an experienced real estate professional and obtaining legal counsel, you can protect yourself against unnecessary cost and potential hardship.