Are you thinking about purchasing a home? Read about these 4 real estate recommendations for you, then contact our Buffalo attorneys now.
1) Buying and Selling a Home at the Same Time
Selling one home and buying another creates a set of complexities that goes beyond those of a regular real estate transaction because two transactions must take place concurrently, following a mirrored path that allows both to close on the same day.- It will be necessary to involve additional people because you now need to coordinate the efforts of attorneys for the seller and buyer involved with your sale, as well as those involved with your purchase.
- If that is impossible, you may have to consider obtaining early entry into the home you’re purchasing and completing that transaction on a separate day, or delaying your purchaser’s occupancy of the home you’re selling so that you can move out a day or two after closing.
- Early entry and post-closing occupancy can be tricky because everyone involved must agree. You essentially enter into a short-term lease agreement to cover the days of post-closing occupancy during which you no longer own the home.
2) The Appraisal Process
- Following your loan application, the lender will evaluate your finances to make sure you can repay the amount you’re borrowing, and make sure the property value meshes with the agreed-upon purchase price.
- If the house doesn’t appraise at a value high enough to correspond with the purchase price, the lender may not lend you the money to complete your purchase.
- Appraisals are undertaken by third party contractors retained by the bank to provide an honest assessment of the property’s value to support the bank in analyzing the value of the property and the cost of the loan.
3) The Four Stages of a Real Estate Transaction
- A real estate transaction has four distinct stages which, to a certain extent, depend upon which side you’re on.
- The first stage is pre-entry into a contract, and the second stage is the actual signing of the contract.
- The third stage involves working through the details of the transaction after the contract is in place, and the fourth is closing and post closing.
4) Title Examinations
- Title examination is among the most important elements of a real estate transaction. The buyer’s attorney will receive an updated search and survey, tax receipts and a proposed deed from the seller’s attorney. Then, the title report will be prepared and examined to ensure that the property is free and clear of any deficiencies in the chain of title or boundaries.
- The title will follow the property’s ownership back at least 80 years, assuring the title examiner that there are no breaks in the chain of title and that no one from the past can attempt to assert a prior claim of ownership.
- The survey is a bird’s eye view drawing of the property showing where the house and any other structures are situated on the lot. It shows the property’s actual boundaries and indicates whether anything owned by others may be encroaching upon your property.
- The buyer’s attorney will ensure that any form of encroachment is addressed before closing.
Are you or a loved one thinking about purchasing a home in Buffalo or WNY and have questions about these 4 real estate recommendations for you? If you have questions about buying or selling property in Western New York, schedule a consultation with an experienced attorney for guidance.
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