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3 Costly Legal Mistakes You Could Make When Handling Real Estate Transactions

25 May 2022 by Yolanda Lane

The high demand for real estate properties has created stiff competition among buyers in recent years. Therefore, if you want to purchase such a property, you need to act quickly to get the best deals. However, the hurry to secure your dream home could mean poor decision-making. For example, you can easily overlook the importance of hiring a real estate lawyer and opt to conduct the transaction alone. Unfortunately, doing this could lead to the following mistakes.

You May Sign a Controversial Sales Contract

Some property owners include controversial clauses in the sale contract to defraud unsuspecting clients of their hard-earned cash. For example, they may state that they will remove some appliances from the house after selling it. Remember that the sale agreement becomes legally binding when you and the seller put the pen on paper. That makes it challenging to amend its details. 

Therefore, it is important to go through the contract skillfully to ensure that all details are clear before signing it. Your lawyer is proficient in real estate transactions and can help you identify any controversial details in the contract. That enables you to modify it to make sure that you get value for every coin you spend.

You Might Buy a Property Whose Title Is Not Clear

The title of the house you plan to buy should bear the seller's name. If that is not the case, you might lose it in the future when the real owner shows up with ownership documents. In addition, you may be forced to relinquish the home's ownership if there are existing loans against the title. 

Your legal advisor can ensure that all the title legal issues are resolved before the property owner sells the house to you. They will conduct a title search to verify the property's current owner. Your attorney will also undertake a thorough investigation to determine whether there are any legal issues surrounding the property.

You Might Sign Incorrect Closing Documents

Errors in the closing documents can cause a delay in the deal or even lead to legal battles in the future if you don't rectify them in time. That explains the importance of working with an attorney when buying property. They will go through the closing documents to ensure that all the names are correct. Your legal advisor will also ensure that all the addresses are accurate and there are no missing pages in the document package.

If not careful in a real estate transaction, you could lose your hard-earned cash. For this reason, you should hire a real estate lawyer to handle the process for you. They will guide you and go through all the documents to confirm their validity before allowing you to sign them. 

For more information, contact a local law firm like Mack Rice Law.

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