A buyer who has knowledge of the real estate laws and real estate jargon of their state is aware of its importance; but not as critical as your Realtor or agent knowing those laws; especially the value of errors and omissions, and how it applies to the paperwork.
Buying or selling a home, in some cases, is not for the “faint of heart” unless you know what your Realtor is talking about. Selling or buying is a complicated process and will involve more tedium than you will ever face in your lifetime. Its “political correctness” times 10.
What Will A New Buyer Be Facing In Terms Of Real Estate Paperwork?
A buyer will want a complete home inspection of the property under consideration for purchase. If complications pop-up the seller or Realtor must abide by your state disclosure laws to avoid any future litigation. Disclosures can be verbal or in writing; get your pages in writing and make sure pages are initialed at the top or bottom by the seller. A buyer must also be concerned if there are any hazardous materials in the home or visible or not visible flaws in construction, which involves more paperwork.
What About Legal Title Issues?
There are two ways to look at any possible legal entanglements involving the purchase of a new or existing home:
#1 – You can open an escrow, have a complete title search of public records to insure that there are no existing liens and encumbrances against the property to prevent the transfer of title from the seller to you, the buyer. Then for further protection, you can purchase “title insurance” from a recognized title insurance company (there are plenty of those) and feel safe that you have just about tossed a protective “blanket” over your new home purchase.
#2 – No state law in this country requires you pay for title insurance, open escrow, and have a public records search run to verify that, as the car dealers say you’re not buying a “lemon”, but keep in mind that a fool and his money, are soon parted.
To get a real estate license part of the exam will deal with the laws pertinent to the state where you live. Real estate agents know this, but many sellers and buyers do not. That can be a monolithic conundrum, leaving the door open for prevarication and fraud. So when you deal with Realtors and sellers, before buying a home make sure you know the seven things a seller must disclose:
** Hazardous conditions
** Roof damage
** Heating and cooling problems
** Water and sewer and septic problems
** Electrical damages
** Faulty appliances
** Any other pertinent disclosures required by state laws
Note: All buyers of real property, regardless of the state, should remember that a home purchase agreement, once signed by all parties concerned, will become a “binding” contract, and should outline all the information about the property itself. Also in some states, each page of the disclosures are required to be initialed as well signed.