Real estate transactions are when a buyer agrees to buy a listed property. Buying a house entails many measures, which vary depending on the form of transaction and state regulations. A real estate transaction attorney knows this law extremely well. Specific procedures and tasks must be performed on schedule before the closing can occur and the title of the property passes to the buyer. While the seller and buyer both have tasks to complete, the real estate agent is solely responsible for these activities.
What Happens During a Real Estate Transaction?
The phases of a real estate transaction process vary depending on the customers involved. But they all have a start and if all goes according to plan, a finish or closing!
1 – List your home for sale or look for the ideal property
The seller lists his property for sale and the buyer looks for the perfect home. The first step you should take before looking for your next home is to get pre-approved by a lender. This letter states the amount of money you will borrow from the bank and the amount you plan to pay upfront for the property.
2 – Offers
The buyer has their real estate agent draft a purchase agreement outlining the price, conditions, and deadlines they want to bid. The price at which a property is advertised, known as the “listing price,” is not always the price a buyer pays for the house.
3 – Negotiation
This is usually the most nerve-wracking aspect of the deal. The seller has the right to examine the bid and then make a counteroffer with the price and conditions that they prefer. During this phase, a seller is only allowed to deal with one offer at a time. Even if there are several offers on the property, the seller will select the most valuable deal, forcing the other buyers to start the hunt all over again. The “purchase price” is the final price agreed upon following negotiations. The date on which all parties agree to accept the final counteroffer is referred to as the “effective date of the contract.”
4 – A title company or a lawyer
The buyer or seller may choose the title company or a different representation can be retained. The buyer pays an initial fee, generally referred to as “earnest money,” to the title company that will maintain it in a non-interest-bearing escrow account until the home closes. The escrow officer is the person in charge of keeping track of this money and ensuring that it is available at closing.
5 – Appraisal, inspections, and repairs
The next phase of the transaction has begun, along with all of its pitfalls and concerns. The mortgage company needs to make sure the house appraises for the price the buyer wants to pay, so it will send a third-party appraiser to do a full report on the home’s price in relation to other comparable homes in the neighborhood. Home inspections are ordered and completed, and the seller is given a list of required repairs. The listing and selling agents then negotiate to see how many found fixes the seller is willing to fix and how many the buyer is willing to fix themselves. If the seller refuses to complete the repairs or give the buyer a closing cost refund, the buyer typically revokes the bid and the process begins all over again.
6 – Contingency removal
In the real estate process, several deadlines must be met. The buyer must obtain funds and unlock the funding contingency by a specific date. Inspections include contingency deadlines that enable all negotiations to be completed by a particular date. Before the transaction closes, agreed-upon repairs must be made and receipts issued.
7 – Closing
The title company or lawyer has to prepare all closing papers for the buyer and seller to sign to transfer possession of the land. A title check will be performed to ensure that the seller has the legal right to sell the property and that the title is free of any problems that may postpone the closing. The mortgage firm will issue a “clear to close,” which allows everybody to exhale a sigh of relief because the buyer’s mortgage is now finalized and the funds are ready to be transferred to the seller. To notarize the papers that the buyer and seller are signing, a notary must be present.
Basic Steps for Closing a Real Estate Transaction
As the closing process is one of the essential parts of the real estate transaction process, people often look to know how it happens. To understand the real estate closing between two parties, you need to follow these steps:
- Choose a real estate transaction attorney or company for closing transactions.
- Submit an initial deposit to your agent for retaining your titled account.
- Collect all the insurance and coverage proofs because proofs are required by the mortgage company to close a transaction.
- Make sure that your title company is issuing title insurance.
- Fulfill all the terms and conditions of the mortgage company to access a complete buyer list of items.
- Be prepared to move by packing up your luggage and hiring movers.
- Briefly review the closing disclosure sent by your entitled company. Check whether all the home-associated cost purchases are mentioned or not. Furthermore, the buyer is supposed to submit the final due amount to the title company even before closing,
- Verify all the house maintenance issues by a final walk of the house before closing.
- Collect and prepare all documents required for closing such as photo, license, proof of transaction transfer to an agent, along with a checkbook.
- As closing takes place at the real estate attorney’s office, all the dealings will be done there. The buyer will get his keys, the company will get his funds, and the seller will get his due transaction after signing the document.
- Never forget to take advantage of the homeownership benefits and residential exemptions.
- Remember the monthly coupon of the mortgage company that you will have to pay for a few months of mission closing.
Role of Different Parties Involved in Real Estate Transaction
Here are some main parties that are involved in making a real estate transaction successful.
1- Real Estate Agent
A real estate broker or agent works for one of the main parties, that is seller and buyer. Sometimes, the same agent works for both parties to close a transaction. Basically, an agent plays a very important role in transferring a property from buyer to seller. Every party comes with its own real estate agent.
Buyers are those who contact a real estate agent to purchase a real estate property through an exclusive argument. The main purpose of the buyer is to contact the agent to seek help in negotiating the price of the property.
A seller is a person who deals with a real estate agent by giving him authority to market his home to attract potential buyers.
4- Mortgage Lenders
Mortgage lenders are those who assist the buyers in fulfilling the necessary paperwork. Whenever you plan to buy a home with a real estate agent, contact a lender first to seek guidance. Because the lender will pre-qualify you about the finances you can get. It will help you in selecting the home to buy accordingly.
5- Home Inspection Companies
The role of home inspection companies is also of great worth. It’s because they can evaluate the quality of the house in a better way. Such companies will make sure that the house is in good condition and made up of high-quality construction materials.
6- Real Estate Transaction Attorney
The conventional way is to do all the paperwork done by the title companies. However, the advanced and reliable way of fulfilling a real estate transaction is through an attorney. The key responsibility of a real estate attorney is the evaluation of the home’s title to get clarity about the easy transfer of the home to the buyer.
Before signing a transaction contract, your attorney’s lawyer will make sure whether the property is legally owned by the seller or not. Give three to four weeks to your lawyer to check the clarity of all matters before finalizing the paperwork.
Reasons You Need a Real Estate Attorney To Handle Transactions
Not even a single person in the world wants to lose his property, security, and money. Investing without any investigation can be very risky. To avoid and reduce such risks, you should hire a real estate attorney. Hiring a real estate lawyer will provide you ease and convenience as your lawyer will work to protect your savings and interests. It will not be wrong to say that a real estate attorney is a shield system for investors.
The following are some reasons why you need a real estate attorney to make your real estate transaction smooth and stress-free.
Not everyone can understand the legal and official things to get clarity and comfort. When you have a real estate lawyer, he will study all the agreements, documents, and contracts to achieve high transparency in the transaction. There is no need to worry if you are unable to understand a legal term. All you need is to contact and communicate with your lawyer to check the validity and transparency of the transaction.
Another advantage that you can get from your real estate attorney is protection. Because a real estate lawyer will evaluate all your needs and help you to negotiate the overall cost. Having a lawyer will work as a support system for you in all situations. It will protect you from investing your money in less beneficial properties. It depicts that seeking attorney help can save you and your family from loss. Feel free to protect your savings by seeking legal counsel to resolve all your problems.
If you are looking to save your investment, ignoring the need of hiring a real estate attorney is not the right option. In fact, you can do more damage to your investment rather than safeguarding your savings. All of your investments and savings can be safeguarded by reviewing negotiations and legal documentation. Get experience in financial savings and real estate property knowledge with the help of a lawyer.
Real Estate Transaction Attorney Near Me
Our team has extensive knowledge and has worked with clients in all areas of real estate. We work hard to achieve the best possible result for our clients by considering their goals and conducting a thorough and objective analysis of the most effective way to achieve them. Through our real estate transaction attorney, you can enjoy fair, high-negotiating, and smooth processing. We assure you to make the transaction process transparent and clear.
If you or your loved one are looking to move or purchase a new home, contact Attorneys Real Estate Group today. Please contact us online or call 916-671-3138; we look forward to assisting you.