Common Legal Mistakes in Residential Real Estate Transactions

When you are purchasing or selling a residential property, you need to be vigilant through the process and make sure to complete all the legal requirements. While residential real estate transactions are not of complicated nature and generally go smoothly, there are a few important legal issues that you must be aware of to avoid any implications during the process.

When such a huge investment is on the line, even the smallest of legal mistakes can create major problems for both the buyer and seller. It is essential to work with an experienced real estate attorney who can oversee the transaction and prevent or handle any potential mistakes.

Mistake #1: The sales and purchase agreement has inadequate or incomplete legal description/information

The sales and purchase agreement must comprise of an adequate description about the residential property being sold. The purpose of including a legal description is to define a piece of land in an unambiguous and unique manner that will stay there forever. This is usually done by making references with the help of blocks and lots in a subdivision map, using the nomenclature that is recognized by the US Public Land Survey System. For a sales and purchase agreement to be enforceable, it is mandatory to include a lengthy, convoluted legal description.

Mistake #2: Not Getting Everything in Writing

This point cannot be stressed upon enough. Before the closing, make sure you have everything in black and white to ensure any inconsistency can be addressed and cross checked at the time of real estate closing. For example, if you have indicated to the buyer about potential repairs and they agree to make them, you should get this in writing and have them sign it so that there is no discrepancy later on.

Mistake #3: Not Checking Whether the Seller has the Authority for Selling the Residential Property

A person who does not own a property cannot sell it. This is a simple concept, however, in some real estate transactions, the person selling the property is not actually the seller. This may happen if the owner of a family home transfer its ownership to a limited liability company, a trust, or pursuant to a community property agreement. It is likely that the seller may have been granted the authority in a power of attorney that has been expired. This becomes a headache for home-buyers in the later stages when they find out that the person they have been negotiating with do not have the authority to sell the property. To avoid this mistake, it is best that you conduct a title search to ensure the seller is the legal owner of the property.

A residential real estate transaction is a big investment, and the legal matters pertaining to its various stages should never been taken lightly. You must make sure that every aspect of the transaction is legally sound before the closing to avoid any repercussions in the long run. Working with an experienced real estate attorney can save you the hassle by diligently overlooking the entire process. Contact the Fitzgerald Law Firm, P.C. to discuss your case and evaluate your options.