| SALE AND PURCHASE OF PROPERTY |
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- PROCESS
The first step in selling real estate is to list the property for sale. A Seller may list
the property for sale by owner or choose the assistance of a realtor. The property
will be shown on one or more occasions. An "offer" is usually made on the
property through a Contract for Purchase and Sale (referred to as the contract).
After negotiations have resulted in an agreed upon purchase price and all
contract requirements, the Buyer and Seller begin to fulfill their respective
requirements under the contract. Once the Buyer and the Seller have fulfilled
their respective contract requirements, the purchase will be finalized in a closing
at a title company. The closing is where the Seller formally turns over the
property to the Buyer by handling over the keys (and the garage door openers)
and signing deed to the property.
- REALTOR
The decision to have a realtor assist you in the sale or purchase of a home is a
choice each Seller and Buyer must make. A Realtor has very different roles when
representing the Buyer versus representing the Seller.
Buyer
Seller
- CONTRACT FOR PURCHASE
The first step in buying property is the Contract for Purchase. The Buyer and/or
the Buyer's realtor prepare the Contract for Purchase with the price they are wiling
to pay for the property and all requirements, called contingencies, that must be
met prior to the property being sold. Some of the contingencies of the contract for
purchase are attorney approval, inspection approval, and financing approval.
Each contingency has its own deadline.
Once the Buyer submits the Contract for Purchase to the Seller, the Seller can
accept the contract with the stated purchase price and all contingencies, deny the
contract as the purchase price or requirements are unacceptable, or counter the
offer with another purchase price or removal of contingencies. If the Seller
counters with a higher purchase price, the Buyer can either accept the higher
price or counter with a lower purchase price. The negotiations may continue until
a price is reached or one party refuses to negotiate further.
Once the purchase price and all contingencies are agreed upon and the contract
signed by both parties, the Buyer and Seller must then meet the contingency
deadlines for the sale to occur.
CONTINGENCIES OF CONTRACT FOR PURCHASE
OPTIONAL CONTRACT CLAUSES
- CLOSING
Closing is name given to the even formalizing the transfer of the property from
Seller to Buyer. The closing is usually held at the office a title company. Attorney
Angela Lund-Logan accompanies all of her clients to the closing.
Title Company
The title company has two roles. The title company's first role is to issue the title
insurance policy. This policy is paid for by the Seller and protects the Buyer if
anyone ever claims to have ownership rights in the property superior to the
Buyer. Prior to issuing the title insurance policy, the title company researches the
history of the property through the deeds called a title search. If the title company
finds any problems in the title search, the title company then excludes these
problems from it insurance coverage. Liens are the most common example of
problems that arise during a title search. Attorney Angela Lund-Logan reviews
the title search conducted by the title company looking for potential problems.
The second role of the title company is to conduct the closing. The title company
provides the office where the Buyer and the Seller meet for the closing. The title
company prepares documents such as the HUD statement, calculates the real
estate taxes, communicates with the mortgage company to assure funding, and
issues checks from the proceeds of the purchase. Attorney Angela Lund-Logan
not only accompanies her clients to the title company for the closing, but reviews
the HUD prepared by the title company for accuracy.
Documents
Deed. For the Buyer to be given title to the property, the Seller must sign the
deed. The deed contains the legal description of the property. The legal
description must be accurate on the deed or the Buyer may incur extensive legal
fees to correct the mistake or even worse not receive title to the entire property.
Attorney Angela Lund-Logan will either draft the deed or review the legal
description on the deed for accuracy.
The title company will take the deed to the Recorder's Office in the county in
which the property is located to allow the deed to be recorded. A deed is not
considered effective until the deed has been "recorded." Once the Recorder's
Office has recorded the deed, the original deed will be sent to the Buyer. Please
be patient as the process can take months.
P-Tax Form. This form gives the information of the Buyer, the Seller, and the
property as well as calculating the county and state taxes for the purchase.
HUD. The HUD statement is prepared by the title company and details the
financial information of the purchase including the payment due at closing or the
refund to be received at closing. Both the Buyer and the Seller will know exactly
what credits were received and what expenses/fees were paid. The HUD acts as
a guideline for the title company to issue checks. The fee for Attorney Angela
Lund-Logan is included in the HUD so her client have one less detail to worry
about.
| WEBSITE OF ATTORNEY ANGELA LUND-LOGAN |