Real estate transactions can be both exciting and stressful, whether it’s your first time purchasing property or your 20th. You’re finally finding your dream home or closing a deal on an investment property. While it’s an exciting time, there are some common legal pitfalls that you should avoid. Here are 5 common real estate law pitfalls and how to avoid them:
Not Conducting a Title Search:
A title search is a crucial step in the real estate buying process. It helps to ensure that the property has a clear title and that there are no liens, judgments, or other claims against it. Skipping this step can lead to legal trouble down the line, resulting in additional expenses and delays. To avoid this, always conduct a title search before closing on a property.
Failure to Disclose Material Defects:
When selling a property, the seller must disclose any known material defects to the buyer. Failing to disclose such defects can result in legal action against the seller. As a buyer, it’s important to hire a home inspector to identify any defects that the seller may not be aware of.
Not Understanding Zoning Laws:
Zoning laws regulate land use and determine what types of activities can take place on a property. It’s important to understand these laws to avoid legal issues, such as being fined or ordered to stop certain activities on your property. Before purchasing a property, make sure to research and understand the zoning laws in that area.
Breaching the Purchase Agreement:
A purchase agreement is a legally binding contract that outlines the terms of a real estate transaction. Breaching the agreement can lead to legal action from the other party, resulting in additional expenses and delays. Make sure to read and understand the terms of the agreement before signing it.
Not Having Proper Documentation:
Proper documentation is critical in the real estate buying process. Failure to have the proper documentation can lead to legal issues down the line. Make sure to have all necessary documents, such as the purchase agreement, title, and mortgage documents, in order before closing on a property.
Buying or selling real estate can be a complex process, but avoiding these common legal pitfalls can help to have a smoother transaction. If you’re unsure about any legal aspects of the process, it’s always best to consult with a real estate lawyer. At Endhome, we’re dedicated to helping our clients navigate the real estate process with ease and confidence. Reach out today to book a free consultation and find out how we can help you.