Avoid These Pitfalls By Hiring A Brooklyn Real Estate Attorney
The fact is – a home tends to be the most expensive investment a person will make in his or her lifetime.
Since buying a home is by nature such a complex and costly process, mistakes or oversights could easily happen and the legal consequences might cause you huge headaches, or much worse.
When you are buying or selling a home, there’s a myriad of highly important legal issues that you must face.
Commercial real estate is usually much more complex, however, residential real estate is far from being a simple process – and even the smaller, subtle legal details need to be handled correctly. Otherwise, these transactions can turn into major problems, with issues that will certainly cost you.
Also, often misinformation can cost local home sellers thousands of dollars during the process. If you are in the market of selling or buying a home, you absolutely need to be properly informed, so it undeniably takes knowing the law, knowing your rights, and knowing how to go about it.
Your first step towards insuring you are doing everything to protect yourself is choosing a reputable and experienced real estate agent to represent your interests. Your next step should be to get a local real estate lawyer who can ensure your interests are protected.
A real estate attorney will review your contracts, advise you before you make a purchase, and make sure that the terms of the deal are properly honored in a contract in order for them to be legally binding. This is especially crucial for the first-time homebuyers.
Real estate transactions require a multitude of vital documents, such as the deed, mortgage loan documents, transfer documents, HUDs, survey, and title search and title insurance. They should be reviewed for any legal anomalies by your real estate attorney, who will then advise that any necessary changes be made and any of your contingencies added.
Your attorney will not only negotiate on your behalf, but also take steps to ensure that you are aware of any legal particulars in the state of New York regarding real estate, and that the contract follows all state laws as well as addresses any specific issues that might affect the future use of the property.
If you have a trustworthy and practiced Brooklyn real estate lawyer on your side, the following pitfalls can be avoided.
1. Oral Contracts
It is very important to know what needs to be put in writing. As a matter of fact, everything should be in writing – and your real estate lawyer will make sure you understand why.
For example, a written promise to buy a property and a written promise to sell the property creates a legally binding contract. On the other hand, an oral promise to buy a house is not be binding, and if you are the seller hoping this is as good as a written offer – you will be disappointed.
Or, if the seller agrees to make repairs to the property prior to closing, there should be an addendum to the purchase and sale agreement stating the specifics of the repairs to be made, and all parties should sign it. Otherwise, it may all be futile promises.
A real estate lawyer in Brooklyn and other NYC areas will be able to properly assist you in all these aspects of real estate transactions.
2. Authority To Sell, Liens, and Property Transfers
This is a universal fact: one cannot sell what one does not own. However, in reality, issues sometimes arise when a homeowner transfers ownership of the family home into a trust, a limited liability company (that may not even exist yet), or pursuant to a community property agreement. The buyer may be unpleasantly surprised to learn that the home was sold in accordance with an expired power of attorney; a seller negotiated a real estate purchase without the authority to sell that property.
Your real estate attorney will order and review a title search – another crucial service. The purpose of a title search is to make sure the property being sold is free of any encumbrances, liens and judgments. The findings of the title search are vital since they reveal whether the seller has the legal right to sell the property.
If the seller must first settle a lien or outstanding court judgment before his or her home can legally be sold, and your lawyer will find that out for you, it can mean extra time, money and efforts are needed before a property becomes yours. Your Brooklyn real estate lawyer will address it by suggesting a price reduction or similar, as appropriate.
Furthermore, your attorney will secure proofs that those liens and/or judgments have been resolved. This becomes especially important if you ever need to get a loan or mortgage against the property value of the new home.
Finally, if a deed is not properly transferred it could lead to a number of income and/or estate taxes imposed on the buyer and/or the seller.
A real estate attorney will assist you with complex negotiations and contract preparation; this is extremely important, especially in cases where one or more parties are trusts, corporations, or partnerships.
3. Zoning Vs. Intended Use
If you purchase a property with the intention to build a duplex, for instance, or use it for personal and commercial use – and the property is actually zoned only for single-family use or as personal property.
Sellers should know the exact zoned status of the property they are selling, and this information must be disclosed to prospective buyers. If you are the buyer, you and your real estate attorney should perform a due diligence inquiry, prior to closing and even if the seller states his property is properly zoned.
4. Survey Clause
If you are looking to purchase a home, you have the right to add a survey clause to the real estate contract on the property you want to buy. You should be aware of the implications of this clause once you become the owner.
Your survey may no longer be current if, for example, a swimming pool or an addition was built, after the survey was drawn up. If your survey is not current, the new survey may be needed, costing you money and time.
A competent real estate agent should provide a survey and be able to advise you properly when faced with issues; it is up to the buyer to determine if the survey is acceptable. You have the right to consult your real estate lawyer before you sign the offer.
5. Home Inspection Clause
Some real estate transactions have fallen through due to – the inspection clause. There are certain contingencies that can cause both parties a headache and lots of money.
If the inspection clause reads that the buyer has the right to rescind their offer if dissatisfied with the outcome of a home inspection, it practically gives them “an easy way out” if they simply do not like something.
In some cases, this is unfair to the seller since a minor repair issue can mean that the buyer has a legal loophole to withdraw from the deal, causing the seller time, missed opportunities, and money.
The home inspection clause in the contract should be worded so that the seller has the option to fix any items that the home inspection flags, making it fair for both the buyer and the seller. Your real estate attorney will review the home inspection and ensure that all pertinent facts about the property are disclosed, including any judgments or defects.
Make sure you are working with an experienced real estate lawyer In Brooklyn who will see that your rights and interests are protected.
6. Property Ownership Agreement
If you are buying real estate with a business partner, life partner, friend or a cousin, in addition to emotional, there are other critical legal, technical, and financial issues to take into consideration. Entering such complex transactions with someone else could, unfortunately, harm your finances as well your relationship, so you should be extremely careful.
You can avoid any future misunderstandings or misperception about your arrangement with a formal ownership agreement.
If you end the relationship or get a divorce, you and the co-buyer will still be part owners and many challenges and issues are likely to arise. Once that happens, you may try to alter the original contract to remove one person’s name from it, which in some cases can be rather difficult.
A skilled attorney will have expertise with different types of arrangements and what to include in the contract. You real estate lawyer in Brooklyn will ensure the contract is consistent with the state’s law, and, as applicable, that the terms of the deal do not violate the partnership’s, trust’s or corporation’s charter agreements. The agreement should be comprehensive and designed to protect all the parties in case of any unforeseen events or disputes, as well as death or separation.
Not having legal representation during the home buying or selling process significantly increases your chances of being sued by the opposing party in case certain information was not disclosed. Although certain risk of litigation may always exist, securing legal counsel undoubtedly mitigates your risk.
The Levin Law Group’s experienced, competent real estate lawyers can assist individuals and business entities in a broad spectrum of residential and commercial real estate transactions throughout New York State.
Take steps today to ensure your rights and interests are protected. Contact our real estate lawyers today:
https://ylevinlaw.com/practicerealestate.html
*The contents of this document are not legal advice and are not to be treated as such. Before making any decision or taking any action, Contact Levin Law Group for actual legal advice.