BUYING A HOME

The purchase of a home is the most expensive single item most people ever buy. Though many transactions proceed without a problem, should you risk that your transaction will be problem free and if there were a problem would you recognize it? Mr. Siebert’s expertise provides his clients with the assurance that all potential issues will be recognized and that their interests in this, the largest financial transaction of their lives is protected.  

The contract governs the nature of the transaction, setting forth the rights and obligations of both buyer and seller. Other than possibly the deed, the contract is the single most important document involved in the purchase of a home. The contract will include all the terms of your purchase, such as purchase price, amount of earnest money deposit, financing terms, closing date, possession date, personal property to be included in the sale, tax prorations, right of inspection, and possible contingencies, such as attorney’s approval, inspection, financing, or the sale of your present home.

It is essential that you understand the terms of your offer before you unwittingly enter into a binding contract.  If your offer is presented to the seller prior to you consulting your attorney, make sure the contract will allow your attorney to review it and modify its provisions, through an Attorney Approval paragraph or contingency. DO NOT SIGN A CONTRACT THAT DOES NOT CONTAIN AN ATTORNEY APPROVAL CONTINGENCY PARAGRAPH. ONCE THE CONTRACT IS SIGNED BY BOTH PARTIES, UNLESS THE CONTRACT CONTAINS AN ATTORNEY APPROVAL CONTINGENCY, YOUR INTERESTS MAY NOT BE ADEQUATELY PROTECTED, AND YOU MAY BE LEGALLY OBLIGATED TO COMPLETE THE TRANSACTION.

DO NOT SIGN A CONTRACT WITHOUT AN ATTORNEY APPROVAL CONTINGENCY BECAUSE YOU FEEL SAFE BECAUSE IT IS A STANDARD FORM OR BECAUSE YOU ARE TOLD IT IS DONE ALL THE TIME. Many form offers to purchase real estate include a provision which obligates the purchaser to take the property subject to all existing easements, covenants, reservations and restrictions of record. If such an offer is signed by the prospective purchaser and accepted by the seller, the purchaser has already agreed to accept any objectionable encroachments which may exist, all without knowledge of their existence. This common occurrence demonstrates again the necessity of having qualified legal counsel to assist you and to oversee the entire process.

Mr. Siebert will assist and guide you through the purchase process.  Among other things, Mr. Siebert or his office will:

-	provide an overview of the process and the attorney’s role in that process
-	review, explain, modify and negotiate modifications to your contract to purchase
-	discuss timing and possession issues, including matters relating to your current property if you are selling or lease if you are renting
-	communicate and negotiate repair issues related by your home inspector
-	examine the title commitment and survey to determine that you are purchasing the property contracted for, without encumbrances or title  defects you have not agreed to accept
-	explain contract contingencies, if any, and monitor deadlines to make sure those contingencies are met
-	verify and explain tax prorations and other closing figures
-	attend the closing to ensure compliance with the contract and to review the loan documents to verify compliance with your loan agreement. There will be many mortgage loan documents and other closing documents to review and sign at the closing. Mr. Siebert will explain these to you and assist you to determine that they are accurate and appropriate. You will receive copies of all documents you sign at the closing
-	and after the closing, Mr. Siebert’s office will keep your purchase file open and active until it receives and reviews the original recorded deed and the final title insurance policy which will then be forwarded onto you. Mr. Siebert will maintain copies in his files to be able to answer your questions if any upon receipt of these documents.

If there is more than one buyer, Mr. Siebert will explain to you the various title-holding alternatives available to co-owners. These are primarily tenancy in common, joint tenancy, or tenancy by the entirety. If you are unmarried and living with a partner, Mr. Siebert will suggest that you enter into a written agreement with your co-owner, to spell out such things as sharing of expenses, unequal contributions, and terminating the co-ownership. Inheritance rights will be determined by the form of ownership and it will affect your individual estate plans.

The single most important concern you have as a buyer is to be certain that you are receiving a "clear" title from the seller. This means that there are no existing liens on the property and no defects in the title. "Liens" are legal claims by a creditor of the seller.  A lien stays with the property. The holder of the lien can collect on the lien by selling the home even if it has been sold to a new owner. Other problems with a title can involve defects in the "chain of title". The chain of title is the history of transfers of the title to a particular property. Title defects can also be disclosed by examining a survey of the property which locates all the property lines, recorded easements, building lines and buildings on the property. If the house or the new addition to the house is built over an easement or property line the value of the property is drastically reduced and in fact may make the house worthless. Would you be able to determine if such a defect existed? Don’t take chances with such an important financial transaction, make sure you are represented by a competent real estate attorney such as Mr. Siebert.

It is even more important to have an experienced real estate attorney if the transaction involves any of a variety of special circumstances, including but not limited to; new construction, condominium purchases, cooperatives, homeowner and other associations, installment sale, land sale contracts, articles of agreement, seller financing, lease-option, by-owner sale, senior/retirement housing, tax-deferred exchange, multifamily buildings, land trusts, estate planning trusts, planned unit development, and  condominium conversions. Don’t be fooled into thinking that because it is new construction you don’t need an attorney, just the opposite, you are buying something that only exists on paper, it is more important than ever to have competent legal assistance such as Mr. Siebert’s to make sure you receive what you contracted

FOR MORE INFORMATION ON THIS SUBJECT OR TO SCHEDULE AN APPOINTMENT WITH MR. SIEBERT TO DISCUSS THIS OR ANY OTHER MATTER CONTACT MR. SIEBERT’S OFFICE.

 REAL ESTATE LINKS AND ADDITIONAL OUTSIDE RESOURCES TO MATERIALS OF INTEREST ON THIS OR RELATED TOPICS