Buying or selling a home can be a long and sometimes difficult process, especially if you have never done it before. From working with an agent to hiring a real estate attorney it’s important you don’t miss any key steps throughout the process. Whether you live in Leominster, MA, Phoenix, AZ, Denver, CO, or Charleston, SC hiring a Real Estate Attorney and working with the right team of professionals will only ensure your homebuying or selling process goes smoothly. To help with this process we asked experts from across the country to share their top tips with you.
1. Don’t try to rush through the process
A big mistake that experienced real estate buyers make is that they try to rush through the process. They feel like they understand exactly how it is going to work because they have bought a home before. So, they end up rushing, making a few key mistakes in the process. Remember that this is an important financial decision with substantial legal implications and it is important to take the time to get it right. Nobody should try to rush through this process when they are looking for a new home. -David Rocheford, The Law Office of David R. Rocheford, Jr.
2. Understand how much paperwork is involved
Attorney’s wish buyers and sellers understood just how much paperwork will be involved! Many first-time buyers and sellers think they’ll sign their name once and the closing will be complete. In reality, buyers and sellers need to sign 10+ documents, and often much more! -Sean O’Dowd, Close Concierge
3. Have your funds squared away before you start house hunting
A good real estate agent will tell you to always know where the money is coming from before you even start looking. In real estate, acting fast gives you a HUGE advantage over other buyers. If your dream home goes on the market, you want to be ready to put in an offer as soon as possible. In order to do that, you need to have the funds already squared away so that you can make the most competitive offer upfront. -Agent Advice
4. Be prepared to make fast, difficult decisions One thing that buyers need to be prepared for is the incredible speed at which they need to make major financial decisions. In a hot market like Phoenix, Denver, Boise or Salt Lake City it’s hard to find a median-priced, detached, single-family home that survives past the first weekend. When a buyer asks “what do you think we should offer?”, I tell them that if you really want this house you need to make your best and final offer up front. In 2021 the asking price is more like the starting bid at an auction and the cash-heavy, decisive buyers are winning. -Michael Bennett, Atlas Real Estate
5. Hire a good home inspector
A competent home inspector can uncover expensive construction defects you may not see during a walkthrough of your potential dream home – allowing you to walk away before closing. However, if you discover a problem after closing that the sellers did not reveal, your options are to pay for the fix yourself or file a failure to disclose lawsuit. So do yourself a solid: hire a good home inspector. -Robinson & Henry, P.C.
6. Don’t forget to update your estate plan
One of the biggest mistakes we see is when clients forget to update their estate plan with the new home or property recently purchased. Specifically, the mistake occurs by not updating their plan to include the deed and title to their new home in their Will or titling the new asset incorrectly. Secondly, it’s important to give implicit instructions on how you would like your home or property distributed upon your death, including any joint owners with right of survivorship. It is integral to update your estate plan every three years or after key life events, such as moving to a new state and/or selling or buying a new home. -Wiles Law
7. Understand your credit score
It’s so important to Understand your credit score and what type of impact that is going to have on your ability to get a mortgage and finance the home you intend to purchase. Knowing your credit score is one of the best tips we can give to buyers who want to begin the home buying journey because it truthfully starts with being ‘able’ to buy a house. If you are not able to buy a house then you need to figure out what needs to happen in order for you to be able to, and that begins with understanding your credit score and personal finances. -Ryan Fitzgerald, UpHomes
8. Take time to properly complete the seller disclosure
When selling a home take the time to properly complete the required seller disclosure. Failing to disclose information about your home that could materially impact a buyer’s decision to purchase can result in legal liability. Read the questions carefully and answer truthfully and completely. In certain situations, it may be prudent to seek legal advice in complying with disclosure requirements. -Bailey Law Firm
9. Know that a Real Estate Attorney can save you money
I wish that home buyers and sellers knew that using a Utah real estate attorney can eliminate a large amount of commission owed to a Real Estate agent. A Real Estate Attorney is also an expert in drafting contracts and can craft and create a sale agreement that specifically protects your interests. -Brian K. Jackson, Brian K. Jackson, LLC
10. Talk with your agent to find out when you will have access to your new home
In South Carolina, there are some counties in which, traditionally, the keys are not transferred to the buyer until after the deed records. Recording can sometimes be delayed until the day after closing, therefore, please speak with your Agent to discuss when you will be given access to the property. -Angie D. Knight, Grand Strand Law Group, LLC
11. Be aware that buyers need their own title insurance policies
Buyers need their own title insurance policies! Title problems could be as mundane as a border dispute and the insurance policy you bought for your lender will not provide any coverage. Only your own title insurance policy can protect you and they are relatively inexpensive compared to what you could be paying in future lawyer fees. -Phillip A. Curiale, Curiale Hostnik PLLC
12. Communication is the key to a successful closing
When a closing attorney reaches out to the consumer there is a genuine purpose. Most often the closing attorney is in need of vital information that will keep the closing on schedule. For example, the closing attorney may reach out to the seller to get mortgage account information, homeowners association contact information, or the last four digits of social security numbers so that the closing attorney can get information to clear liens. The closing attorney may also reach out to a buyer for information about the lender, whether or not the buyer wants a survey, how the buyer intends to hold title, or if the buyer plans to attend closing or close via power of attorney. Thus, when the closing attorney’s office reaches out to the consumer it is imperative that the consumer respond immediately as the request is most often time-sensitive. -Blair Cato Pickren Casterline, Podcast: Dishin’ Dirt
Originally Published on Redfin
Seattle, WA
By: Lexi Klinkenberg
Lexi is part of the content marketing team and enjoys writing about real estate and design trends. Her dream home would be a contemporary home with an open floor plan, lots of windows, and a waterfront view.
Virtual Notarization: Addressing Challenges Related to COVID- 19
On April 27, 2020, Governor Baker signed this new law.Learn More
As you have probably heard, on April 27, 2020, Governor Baker signed, a new law, “An Act Providing for Virtual Notarization to Address Challenges Related to COVID- 19,” now Chapter 71 of the Acts of 2020.
The new law provides a framework and process for a Massachusetts Attorney to notarize documents with the use of video conferencing allowing the notarization of documents without meeting the statutory “in-person” requisite. Based on the requirements of the law, the following is an example breakdown of the process which would be followed under the law. If you would like more information on the law and the process contact us and we can schedule a video conference with Attorney Rocheford, you and your team to provide a detailed explanation of the law and the process.
Sample Virtual Notarization Process:
Closing documents will be provided to the borrower/signor (individuals signing) by FedEx or another express carrier. This is the preferred method for getting documents to the signor.
Alternative options (additional fees may apply):
The documents can be sent securely in electronic form (PDF).
The documents can be picked up in person.
The documents can be delivered to the borrower/signor by courier.
Borrower will print the documents; in the event they are provided electronically.
Borrower will review all the documents and make note of any questions or concerns.
Borrower will send an email with any questions or concerns they may have.
Once questions and concerns are addressed, at a prescheduled time, borrower will join a Zoom meeting with Attorney/Notary and establish a video call.
During the video call, the borrower will sign and acknowledge the mortgage and other documents that require notarization. All other documents will be signed prior to the video call.
Borrower will return the original signed paper documents to the Attorneys office.
Once the original, signed paper documents are received back a second video call with the borrower to confirm/complete the notarization will be scheduled.
After the second video call the closing/documents will be processed as normal.
In certain cases, some of the closing documents may be able to be signed electronically. However, any document that requires notarization will need to be processed virtually in compliance with the Act. The Act does NOT provide for electronic notarization, and the Act does not provide for electronic signatures for documents that will be record.
Signor will need:
To be physically located in Massachusetts
Blue ink pen
One government issued photo ID
One additional form of government identification
Ability to provide a copy or photograph of their IDs
Internet access to Zoom.us
Video camera with audio (Facetime is not an option)
The ability to return original, singed documents back to our office promptly.
Administration:
A Virtual Notarization Affidavit will be executed by the notary for each transaction
The Zoom conferences will be recorded
The affidavit and video conference recording will be kept on file for 10 years
Providing title, escrow, closing and settlement services to clients throughout Massachusetts and New Hampshire
“I would highly recommend David as a closing attorney. I have known David and have been using his office for many years. David’s professionalism when dealing with me, my closing department and most especially my clients has been always exemplary.”
DAVID BREMER
SENIOR LOAN OFFICER,SHAMROCK FINANCIAL SERVICES
“The Law Office of Attorney David R. Rocheford, Jr. is by far the most exceptional real estate law office that I have had the pleasure of working with. The professionalism is by far second to none.”
JACQUI KEOGH
SENIOR LOAN OFFICER,SALEM FIVE MORTGAGE SERVICES
“Attorney David Rocheford has provided settlement and title services for me and Greenpark Mortgage several years. He has assisted all of my clients, including my family and friends with mortgage closings. Always providing excellent service. Reliable and trustworthy!”
Purchasing a home is an exciting milestone, but when it comes to the closing process, many first-time buyers can feel overwhelmed.A lot of confusion arises from myths and misconceptions about what happens during closing. Don’t worry—today, we’re clearing up five of...
As climate change intensifies, homebuyers and sellers are paying closer attention to how environmental risks affect property values. Natural disasters such as floods, wildfires, hurricanes, and rising temperatures are impacting decisions in the real estate market....
Buying a home is one of the most exciting and important decisions you'll ever make. It's a significant milestone, but also a complex process with a lot of moving parts. Whether you're a first-time homebuyer or a seasoned homeowner, it’s crucial that you feel confident...
Your house is one of the most important investments you will make. Unfortunately, no house is perfect, and when you’re in the process of making the purchase, a repair issue may crop up. How do you determine what should be done, and whose responsibility it is to take care of it?
Red
Flags for House Hunters
Searching for your next abode is a big deal.
You want a place that’s safe, comfortable, and enjoyable, and most homeowners
don’t want to deal with problems immediately after moving in. With a little
scrutiny, you can often rule out homes early in the process.
For example, when you’re at a showing, take a
hard look for evidence of roof issues. Do you see missing or
damaged shingles? Is the paint in good shape, or is it peeling and blistering?
Are there stains on the interior ceilings? A roof repair might or might not be
a deal-breaker, but unless the home is being sold “as-is,” it’s certainly a bargaining chip.
Along those same lines, there are some other red flags worth noting. Standing water can
cause issues, so look for evidence of rotten wood in the kitchen, bathroom, and
laundry floors. If the appliances come with the home, examine them for signs of
neglect, and be alert to drainage concerns around the foundation, such as
ponding water, severe settling, or mold. Also, weed out homes with issues that
are more than you want to face.
Call in
a Professional
Once you find a home you want to purchase, one
of the wisest choices you can make is to invest in a professional home
inspection. This is typically done when you have begun formal contract
negotiations. Fortune Builders points out that you should check the qualifications of inspectors you’re
considering hiring, and ask to see samples of reports they have produced.
Request references, and check with family members and friends to see who they
used, and whether or not they were satisfied with the work.
To Fix,
or Not to Fix?
Once you select an inspector and the report is
complete, you’ll need to sort through the details to figure out what, if
anything, is a sticking point. There are certain repair requests home buyers shouldn’t
bother to make of sellers, such as cosmetic issues, common wear and tear items,
and renovations you intend to complete anyway. (After all, if you’re planning
on doing the work, you want it done to please you. If you leave it to the
seller, they have no obligation to suit your tastes, only basic standards.) The
requests worth considering include things like termite or pest infestations, drainage concerns, major plumbing or electrical problems, lead paint, mold or radon issues, and structural concerns. Basically, stick with
safety issues and problems which are especially expensive to resolve.
Paying
for Repairs
There are a couple of things to bear in mind
regarding your repair requests. Since the seller won’t be staying in the house,
you could have reason to worry about the repairs being completed the way you
would like. Besides, sellers are often in the midst of a lot of expenses, just
like buyers, so they might not have the cash flow to do a nice job. In this
case, you might want to ask for a seller’s concession. Basically, it gives you a
break on the purchase price and allows the seller to get on with the sale, so
everybody wins.
Another idea is to pay for repairs out of
escrow. As Total Mortgage explains, your mortgage company would reassess the
home based on the projected value once repairs are complete, then set the money
aside in an escrow account for you to use toward repairs.
You want your next home to keep you happy,
safe, and comfortable. When you’re purchasing a house, take a hard look during
the showing, and follow up with a professional home inspection. Afterward,
negotiate repairs to ensure you’re satisfied with the results. With a solid
plan in place, you’ll have your investment well-protected.
I have had a lot of questions recently regarding the topic of marketable vs. insurable title. They are both terms of art, in that they are unique terms to the legal and title industry. They are not easily defined with comparable examples.
When a title is marketable it means that the chain of ownership (title) to a particular piece of property is clear and free from defects. And as such, it can be marketed for sale without additional effort by the seller or potential buyer.
In contrast an insurable title does, or may have a known defect or defects in the chain of title. However, with an insurable title, a title insurance company has agreed in advance to provide insurance against the defects ever affecting the ownership or value of the property.
If a property does not have a current, valid title insurance policy and there is a defect in the chain of title, then the defect must be cured or repaired before a seller can convey marketable title. If there is a current policy, rather than curing or fixing the defect, which can be very expensive and time consuming, the title insurance company may elect to insure against any problem the defect may cause in the future. That is, the insurance company agrees to fix the problem only when – and IF – it ever becomes an immediate problem. Some defects in title may never become a problem or threaten the value or ownership of the property. Title insurance companies, like any insurance companies are in the business of risk management, and whenever possible would rather defer the risk then to pay to address/correct it.
One of the biggest problems with insurable title is that a buyer of a property accepting insurable title (rather than marketable title) is taking a risk of their own. It’s not that the defects may ever threaten the value or ownership of the property, but that upon resale of the property the next buyer may not be as willing to accept the insurable title and may demand a marketable title.
Be sure that you know the type of title the seller intends to convey before you sign a purchase contract.
For the first time in a year, homeowners with adjusting mortgages are facing rising mortgage rates. The interest rate by which many adjustable-rate mortgages adjust has climbed to its highest level since September 2010, and looks poised to reach higher.
This is because of the formula by which adjustable-rate mortgage adjust.
Each year, when due for a reset, an adjustable-rate mortgage’s rate changes to the sum of fixed number known as a “margin”, and a variable figure known as an “index”. For conforming mortgages, the margin is typically set to 2.250 percent; the index is often equal to the 12-month LIBOR.
LIBOR stands for the London Interbank Offered Rate. It’s a rate at which banks lend to each other overnight.
Expressed as a math formula, the adjusting ARM formula reads : (more…)
Home affordability slipped slightly last quarter, dragged down by rising mortgage rates and recovering home prices in Massachusetts and nationwide.
The National Association of Home Builders reports a Q2 2011 Home Opportunity Index reading of 72.6. This means that nearly 3 of 4 homes sold last quarter were affordable to households earning the national median income of $64,200.
Q2 2011 marks the 10th straight quarter — dating back to 2009 — in which the index surpassed 70.
Prior to 2009, the index had never crossed 70 even one time.
However, we must remember that the Home Affordability Index is a national survey. From region-to-region, and town-to-town, home affordability varied.
In the Midwest, for example, affordability was highest. 14 of the 15 most affordable markets nationwide were spread throughout Ohio, Michigan, Illinois and Indiana. Only Syracuse (#9) cracked the list from other regions.
The top 5 most affordable cities in Q2 2011 were: (more…)
Home affordability slipped slightly last quarter, dragged down by rising mortgage rates and recovering home prices in Massachusetts and nationwide.