Purchasing real estate property is not something we tend to do on a daily basis. It’s not like going through some grocery shopping where the receipt more often than not remains merely an afterthought. Legal matters are the least of our concerns when it comes to shopping for such items. Unfortunately, many of us tend to apply the same thought process when purchasing real estate property. How hard could it be right? You’re just bargaining for the right price with the owner, and when all is said and done you just pull out a hefty chunk of change (usually after borrowing it from lenders such banks) and hand it out to the owner. You exchange a couple of papers and voila, you’re the new house owner in Midlothian! Right? Wrong!
Real estate transactions are extremely complicated matters marred by dozens of legal complications and paperwork that the average Joe simply has no clue on. The DIY-attitude brought about by the internet has deluded us into thinking that the middle man, usually the lawyer or a real estate agent is something we can do without. We trust our own skills a little too much, and in the hopes of saving a couple of hundred bucks by not hiring a professional Midlothian Lawyer. As a result, people often end up losing hundreds of thousands of dollars and get caught up over legal court proceedings.
Real estate attorneys from one state are often unable to operate properly in a completely different state. So, we ask the reader, if the veterans find this to be a difficult scope of law, how can someone with practically no idea on law hope to carry out a real estate transaction without incident and hope to make it out perfectly safe on the other side?
In this post, we have collected few problems the experts at Hardesty Law Office have pointed out, and which can stem from a real estate deal gone bad:
1) The terrifying paperwork
There is a lot of paperwork involved: if you’re purchasing a house after 2015, you’ll have to go through the HUD-1 Settlement Statement and a Truth in Lending Disclosure. Then there are the title deeds page. How can you ensure that the title of the house actually belongs to the owner of the house? Estate attorneys perform proper background checks, verifying the title of the house and spotting any possible disputes that might arise later on when you finally have purchased the house. These disputes could be a family member of the former owner laying claim to the house. Imagine getting yourself caught up in a legal dispute with someone you barely know making unjust claims that the house belongs to them!
The legal fees you might incur from this can cripple you while sending your family spiraling down into emotional turmoil. The realization only hits you now that you should have hired a lawyer before things got out of hand. It would have cost you just a fraction of what it does now.
2) Unpaid lines and taxes
Owners often-times have hundreds of thousands of dollars in unpaid taxes. When you blindly sealed the deal you inadvertently brought over the responsibility of paying off those taxes. Brace yourself for long, costly legal battles on whether you should be paying these taxes or not; and then prepare to pay out when the court does eventually find you guilty for not paying the former owner’s taxes!
3) Understanding the terms of purchase agreements
Tiny little clauses in the terms of agreements which is nothing but technical jargon to the average person can actually present serious problems later on. It is in your best interests to hire a Midlothian lawyer to peruse through the documents and assess whether the terms of agreements are in line with your interests. Your real estate purchase contract includes the following important details:
- description of the property
- earnest money deposit (if any)
- date of closing
- amount of down payment
- the exact date when you’re eligible to move in
- which items are included in the real estate deal (light fixtures, water heater and furniture)
- technical jargon detailing how you could cancel the real estate transaction, or how the seller could back out of the deal.
The last item is extremely important and if it favors the seller then they will be able to back out of the deal and take the escrow money along with them.
You have to be extremely careful not to let them take advantage of these hidden clauses. The rather difficult, technical language used in the paperwork makes it an impossible task for the average person to go through the documents and understand what is written in them. Making sane decisions involve understanding the terms of agreement which requires the expert help borrowed from real estate attorneys that are thoroughly acquainted with the laws of your state.
4) Hidden easements
Some homes have hidden easements within them that you would not normally know about until some government agency or business knocks on your door to inform you that a certain part of the property can be used under easements issued over your home. Real estate attorneys can find these red flags before you go through with the transaction. Sometimes clever, shrewd sellers end up granting themselves easements over certain parts of the property, allowing them legal use over your home even though you just bought it from them. This might seem like criminal activity, but because they grafted the easement before you found it out – nothing can be done about it other than to contact an attorney.
5) Filing the real estate deeds
For the property to officially exchange hands, it first needs to be filed at both county and state levels. If the real estate deed is kept only between you and the seller, you won’t be considered the legal owner of the property by the state. A real estate attorney ensures that the deed is properly recorded at both levels. Failure to carry out this vital task can easily put the ownership of your property at serious jeopardy and you might even end up losing it.
By hiring a real estate Midlothian lawyer, all the above-mentioned problems and more will simply disappear. You will not need to concern yourself with state laws and go through thick books dealing with legislature. Just let the professionals handle the real estate transaction, which is probably the biggest deal of your life. You will be future-proofed and can rest assured that all the possible loopholes are sealed. This eliminates the chances for litigations in the future that could prove to be costly, time consuming, and emotionally draining for you and your family.
Most people call a real estate attorney in Midlothian TX only until after they have found themselves in an impossible situation to come out of. Often times, things can go out of hand and hiring legal help at this state will not only cost you significantly more but also reduce your chances of coming out of the litigation in one piece.
If the transaction is occurring over commercial property, the stakes are even higher. Your attorney will help you legitimize your new business and register it properly with the state. They will also help you in deciding whether it is a sole proprietorship, partnership or a corporation. Your lawyer will also help you get the proper approvals from the government before you can move ahead with the building and your business.
At the end of your transaction, you will be the proud owner of a new house (or business) and will be rest assured that no legal loopholes will come to bite you in the new future.