Buying a home is an exciting time, but it can also be a stressful one.  As your attorney, I help guide you through the entire process and protect your legal interests.  

 

Contract Review

The first step in purchasing a home is signing a purchase and sale contract.  If you have a real estate agent, the agent will prepare the standard contract, which includes important terms like the purchase price, closing date, mortgage amounts, and whether any personal property fix in the deal.  Once both the buyers and sellers agree to terms, the contract is signed, and attorney review begins.

 

Attorney Review

Once the contract is signed, each party has three days to have their respective attorneys review the contract.  Usually, the attorneys write each other letters indicating that the contract, as written, is "disapproved."  Technically, this cancels the contract, but the practical purpose is to allow the attorneys to suggest changes and fine tune the standard contract.  After the attorneys agree on the changes, which are written on addendums or riders, the contract then becomes binding.  

 

 A common misconception about attorney review is that it must be completed within three days.  This isn't true.  The law states that the attorney must disapprove the contract and initiate attorney review within three days.  After that, there is no specific timeframe in which attorney review must be completed.  During attorney review, your attorney will explain the contract to you, answer questions, and ensure any concerns about the property are addressed in the contract.  

 

Mortgage Application and Contingency

If you require a mortgage to purchase the house, the contract will provide a mortgage contingency clause.  You will need to use your best efforts to apply and obtain a mortgage commitment within the time frame outlined in the contract.  If you are going to miss the deadline, your attorney can request extensions.  Once you obtain your mortgage commitment, it is forwarded to the seller and the mortgage contingency is included.  

 

Inspection Contingency

Soon after the conclusion of attorney review, the Buyer will pay for a licensed inspector to conduct an inspection on the home.   Once the inspection is complete, you and your attorney will review the report together.  Then your attorney may write a letter requesting the seller make repairs to any structural and mechanical defects, wood destroying insect infestation, and radon.  Oil tanks, septic systems, and swimming pools are also inspected if present on the property.

 

Once the request for repairs is sent to the seller, a negotiation may ensue.  The seller will usually agree to fix certain items or offer a monetary credit instead of making the repairs.  Once a final resolution is reached, the inspection contingency is over.  However, you must remember to follow up before closing to ensure all repairs were made in a satisfactory fashion.  

 

When a home is sold from foreclosure or "re-sale," it is usually sold "as is."  The inspection is done to identify structural and mechanical defects, but do not expect the seller to make any repairs or offer any credits.  

 

In most transactions, the seller must schedule an inspection to obtain a certificate of occupancy and fire code inspection.  These are done separately from the buyer's inspection. 

 

Title Search and Survey

In order to close on your home purchase, the seller must deliver clear title to the property.  This means there are no defects or liens on the property. To ensure there are no defects or liens, the Buyer orders title searches and a survey.  These items are usuauly ordered after other contingencies are satisfied so that it is s understood you're working towards closing.  If title searches are ordered but you decide to not follow through with the transaction, you are still responsible for the cost of the searches.