So besides having your real estate lawyer read through the contract itself are there any other steps they need to take during any given property deal? Actually there are quite a few and you need to be aware of each one, ensuring you stay in the loop at all times.
Liens
Not realizing there\’s a lien on a property can be a massively expensive mistake for a property investor to make. To ensure that no lien exists against the property you\’re considering acquiring or investing in your attorney can perform what\’s called a title search, which basically establishes whether or now the \”owner\” of the property is legally entitled to sell it in the first place. You can perform a title search yourself, but any mistakes you make could cost you hundreds of thousands of dollars.
Binding Contract
You might be the best negotiator in the world and more than capable of hammering out the exact real estate deal you were looking for. However unless you\’re properly versed in all the state and local regulations required to draft a legally binding contract then you\’re best leaving that work in the hands of your experienced and ever-reliable real estate lawyer instead. One example of this is that in certain states both the buyer and seller have 3-days to examine the contract to ensure they\’re happy with it – 99% of property investors have no idea this stipulation exists.
Your attorney will also need to prepare something called the HUD-1, which is a financial document which shows the total value of the transaction and the total funds required for it to take place successfully.
Throughout the inspection phase of the purchase your attorney will help you negotiate with the Buyer or the Seller to remedy the issues at hand which were discovered by the hired inspector. If the Seller is unwilling to remedy all the issues outlined in the inspection report the Buyer through his attorney may ask for financial to be paid at closing to free the Seller from his or her obligation to remedy all the inspection issues.
Once this is done your attorney will then need to prepare the other documentation relevant to the purchase which includes tax forms, the HUD-1 and a document of title transfer. You will then need to meet with your lawyer to sign these documents at least 72-hours before the property deal closes.
The very last step your real estate lawyer will then take is handing you the keys to the new home you\’ve worked so hard to acquire.
All that\’s left for you to do now is move in, add your own belongings and for your entire family to enjoy it.