Wednesday, January 08, 2020 / by Drew Nicoll
When you're buying or selling a home, there are many small but important legal issues that you may be unaware of that are, nevertheless, critical to understand. Residential real estate is not an uncomplicated process. When such a major investment is transferred from one party to another, there are subtle details to take care of that can turn into major problems if not handled correctly
It is essential to understand the legal ins and outs that will properly protect you when you buy or sell a home. There are several issues that will certainly cost you if you are not properly informed. In a recent situation right here in the area, misinformation cost one local home-seller over three thousand dollars in the sale of their home. Don't let this happen to you.
In answer to this issue, Industry Insiders have prepared a FREE special report titled, "Legal Mistakes to Avoid When Buying or Selling a Home"
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 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.
There are 3 Legal Issues That Could Cost You Thousands
Following are 2 of the 3 common examples of legal clauses that can work to your disadvantage if not worded correctly:
1. Survey Clause: Homebuyers have the right to have a survey clause added 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. Evaluate each agent’s responses to these 10 questions carefully and objectively. Who will do the best job for you? These questions will help you decide. 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 homeseller 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. An experienced real estate agent should provide you with a survey and it is up to the buyer to decide if the survey is acceptable. Your agent should be able to advise you appropriately when dealing with this issue, but if you or your agent are unsure, you have the right to consult your lawyer before you sign the offer. Don’t be afraid to take this important step, as thousands of dollars could be riding on the decisions you make at this point.
2. Home Inspection Clause: 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 a buyer a legal loophole to their change of heart. Meanwhile, the seller lost both time and money because of this technicality. First, they may have declined other offers (offers which may now be lost forever) in favor of the one which has now fallen through, and missed the opportunity for other offers which might have come through during the current negotiations. Secondly, their home may have been unfairly labeled as a “problem house” which could cost them in terms of the dollar amount of subsequent offers. And thirdly, they then found themselves back on the market, incurring the inconvenience and additional carrying costs of having to market their property for a longer period of time. This clause should read that the seller has the option to fix any items that the home inspection flags. This wording protects both the buyer and the seller. The buyer is assured that the home they are buying meets objective structural standards, and the seller is protected against the whim of a buyer who changes his/her mind. Not all contracts will be written in this way. Make sure you are working with a lawyer experienced in real estate matters to ensure your interests are protected.
So, there are 2 of the 3 clauses, in an effort to draw attention to this very important topic. If you'd like to see all 3 of these legal issues, I have put together a FREE Special Report titled “Legal Mistakes to Avoid When Buying or Selling a Home" which explains these clauses in greater detail.
You can grab a copy of that report for free by visiting: www.TheNicollPalliniGroup.com/coaching_legal or give me a call at 707-380-8057.
Thank you for watching this week’s video, and Go Serve Big!
The Nicoll Pallini Group
Your Home Sold Guaranteed or I'll Buy It! So, if you or anyone you know is considering making a move, feel free to give me a call or pass on my number! 707-380-8057