Expert on title and settlement

PURCHASE YOUR HOMES CAREFULLY

The purchase of a home is major milestone in many people’s lives. Most people spend their life’s savings on the purchase or go into debt to purchase their dream home. Hence it is crucial that the title of the home is clear in all respects. Once you take possession of the house it should come only to you and should not in any way involve you in any legal wrangles. Hence it is imperative to check all the documents pertaining to the house.

Before going in for the purchase you need to check the purchase agreement which is actually the contract between the buyer and seller of the home. Before you sign the agreement just make sure that it includes everything important. If the agreement is in writing it is enforceable. When you buy a house you are also buying the land and all structures on the land. In most purchases the buyer makes an offer by signing the agreement and giving it to the seller. The buyer can agree to the agreement or ask for changes. When both sign the agreement then the parties have a binding contract.

If the buyer makes a deposit, it will be held with the Title Company, or real estate agent or lawyer. If any condition is not accepted then the money will be returned to the buyer.

Most buyers go in for financing through loan or mortgage, or on land contract. With the land contract the buyer makes down payment and pays the seller the balance over time or they can go in for a lease with a purchase option. This permits the buyer to rent the home for a period of time before deciding to purchase it.

A survey could also be conducted on the home which will show the amount of land, exact boundaries, roads, easements and encroachments onto or off of the property. If the home is not a part of a land division then the purchase agreement and deed should state the number of land divisions the seller is giving to the buyer. A land division is the right to lawfully split the land into two or more parcels.

Closing happens when the buyer pays the seller and the seller transfers title to the property. Most closings are held by a title company lender or lawyer. The closing statement will contain the summary of the amounts paid and received by the buyer, seller and third parties involved. It should contain the purchase price, adjustments for real property taxes and utilities, broker commissions, transfer taxes, title insurance premiums, mortgage and lien payoffs and other closing adjustments. Care should be taken that it includes all the mounts spent for the purchase.

The transfer taxes are normally paid by the seller payable when the deed is executed. Actual possession happens only after closing, if the seller happens to remain in the home after closing he pays rent for that period. The buyer has to take the responsibility to record the deed or land contact with the local county Register of Deed office promptly after closing. He must also file a property transfer affidavit within 45 days after closing; the affidavit discloses the identity of the buyer and seller as well as the date of transfer and purchase price.

The bill of sale transfers titles to appliances and other personal property. Unlike the deed it is not recorded.

If you stay in the house then you can claim it as homestead and pay lower real property taxes, a homestead affidavit must be paid before the local assessor.

Every home should have an insurance whose policy must cover liability if someone gets hurt in the property and property damage due to fire or other casualty. In case the buyer or seller cannot perform all obligations before closing all documents or money should be placed in escrow with the Title Company, broker or lawyer until all conditions are satisfied.
If any further problems occur then you can seek the advice of a lawyer.

Article Source: http://www.articlesinsight.com

Shane Smith is the author of this article on Expert on title and settlement. Find more information about Expert on title and settlement here.

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