Real Estate Transactions

1. Do I need legal advice before signing a contract to buy or sell a home?

The short answer is yes, absolutely. A contract (sometimes referred to as a Purchase and Sales Agreement) is a legally binding document. In most instances, it contains important provisions about a mortgage contingency, an inspection contingency, a closing date, consequences of a default by either party, and other important legal provisions. Once the contract has been signed, you are bound by its terms. It is a mistake to assume you can change a provision of the contract that turns out not to be to your liking.

2. What is title insurance and why do I need it?

When you buy a home it is of the essence that you receive “clear title” to your home. Prior to the closing, your attorney will arrange to have the Land Records carefully searched to verify that the title you will be receiving is, in fact, clear title. Notwithstanding the care and skill that goes into searching the title, there are many potential defects in title that simply cannot be discovered, even with a careful title search. A few examples include forged deeds, unreleased mortgages or other liens, claims by Indian nations, and transfers by persons without legal capacity. For a modest price, an owner’s title insurance policy will give you coverage for any such title defects.

3. What is a reverse mortgage, and is it right for me?

If you are short on cash, have limited income, and have substantial equity in your home, a reverse mortgage may be an option to consider. It is available to homeowners 62 or older, with limits on the amount that can be borrowed determined by your age and the value of your home. The most attractive feature of a reverse mortgage is that no repayment is required while the homeowner is alive and living in the home. Money can be taken as a lump sum or as a periodic income stream. Interest accrues on the amount that has been borrowed, thereby reducing the equity in the home over time. Interest rates and loan charges for most reverse mortgage products tend to be higher than conventional mortgages or lines of credit. It is helpful to compare a conventional line of credit as an alternative way to access cash from your home, when needed.

4. If I am selling my home and you act as my attorney, what will you do for me?

Typically, the work on our end involves reviewing the proposed contract and suggesting/negotiating changes, when applicable, monitoring the inspection and financing contingencies, addressing any issues that may arise prior to the closing date such as requests for extensions of contract deadlines or adjustments to the price based upon the home inspection, reviewing the title search report, addressing any title issues disclosed by the title search report, coordinating tax and other adjustments with the Buyer’s attorney, and attending the closing and representing your interests at the closing.

5. If I am buying a home and you act as my attorney, what will you do for me?

Typically, the work on our end involves reviewing the proposed contract and suggesting/negotiating changes, when applicable, monitoring the inspection and financing contingencies, addressing any issues that may arise prior to the closing date such as requests for extensions of contract deadlines or adjustments to the price based upon the home inspection, obtaining a title search report, addressing any title issues disclosed by the title search report, coordinating tax and other adjustments with the Seller’s attorney, reviewing, explaining, and supervising the execution of the mortgage documents that will be associated with the financing, and attending the closing and representing your interests at the closing.