Real Estate Lawyer Naperville IL – ASM Law
The purchase of a home is often the most significant transaction many people will make in their lifetime. Notably, buying a home involves the unique aspects of real estate law. That makes buying a home a transaction that is unlike most others. A Real Estate Lawyer Naperville IL provides expertise in dealing with these unique aspects. In addition, a lawyer represents your interests in a real estate deal and works to ensure it’s fair to you.
Purchasing a Home in Illinois
In most conventional residential purchases, the seller goes into a brokerage contract with a Realtor. Typical, it’s in the form of a written contract.
When Realtors connect with prospective buyers, they conduct negotiations, most often functioning as an intermediary. After reaching an informal agreement, the seller and prospective buyer enter a written formal contract for the deal. This document is the purchase agreement. Subsequently, the buyer gets a commitment to finance the purchase. Also, there is a title search to show the lender and the buyer. Lastly, the seller transfers the property to the buyer and then receives payment in the amount according to the contract. This may seem pretty routine. However, without a Real Estate Lawyer Naperville IL, the consequences of a bad transaction can be very negative and take years to recover.
Steer Clear of Vague Terms – Real Estate Lawyer Naperville IL
The guidance of a Real Estate Lawyer Naperville IL helps avoid the common problems that occur with property transactions. For example, a home seller might sign a purchase agreement that fails to resolve multiple legal issues. This takes place fairly often because Realtors frequently use basic forms. They incorrectly assume the forms will adequately cover all issues or are easy to customize.
Without an agreement that addresses all the circumstances of the transaction, a seller might be liable for paying a commission. Even if a home sale does not happen. An agreement that grants the seller the ability to negotiate on their behalf, for example, avoids this potential problem. A Real Estate Lawyer Naperville IL can negotiate the rights of the Realtor in case the seller removes the house from the market.
Home sellers need the legal expertise of an attorney when it comes to a purchase agreement. Certainly, even if it’s in standard form, terms of the agreement may require explanation to seller and possible revisions. Additionally, a Real Estate Lawyer Naperville IL should assess if the parties sign the agreement properly.
Consider an Initial Free Consultation with ASM Law
Some negotiations may not require the input of a lawyer. However, each side typically needs to consult with a lawyer for answers to important questions. For instance, tax issues relating to a transaction are an important issue, particularly for the seller. Your real estate lawyer can advise the seller on possible provisions for excluding capital gains in some circumstances.
Purchase Agreements
A purchase agreement is among the most essential documents with respect to real estate transactions. Standard print forms are of practical use. But a lawyer can explain the form and make changes according to their client’s wishes. There are a number of issues to address in a purchase agreement. Some typical examples include:
-If alterations or additions are made to the property, are they lawful?
-If the buyer intends to make changes to the residential property, will they be done lawfully?
-What occurs if a home buyer retains an engineer to perform an inspection of the property and discovers a problem? For example, if an inspection reveals termites, high radon levels or asbestos?
-What takes place if an inspection finds the presence of hazardous waste at the property?
-Detail the legal consequences in the event the closing falls through. For instance, what becomes of the down payment? In addition, the issue sparks other questions too. Would a down payment remain in escrow in compliance with precise instructions? How shall payment proceed and is the closing conditional upon the home buyer getting financing?
Many buyers finance a large part of the price for a home via a mortgage loan from a lender. A purchase agreement should state a provision that payment is subject to a commitment for the financing. It must be satisfactory to the buyer and the lender.
Typically, a title insurance company orders a title search.
In some states, and in outlying areas of others, title insurance is not typical. In such cases an attorney is essential to review the status of title and render an opinion of title in lieu of a title policy.
Assuming you are in an area where title insurance is customary, an attorney can help review the title search and explain the title exceptions as to what is not insured, and determine whether the legal description is correct and whether there are problems with adjoining owners or prior owners. He or she can also explain the effect of easements and agreements or restrictions imposed by a prior owner, and whether there are any legal restrictions which will impair your ability to sell the property.
The title search does not tell the buyer or seller anything about existing and prospective zoning. A lawyer can explain whether zoning prohibits a two-family home, or whether planned improvements violate zoning ordinances.
The Closing
The closing is the most important event in the purchase and sale transaction. The deed and other closing papers must be prepared. Title passes from seller to buyer, who pays the balance of the purchase price. Frequently, this balance is paid in part from the proceeds of a mortgage loan. A closing statement should be prepared prior to the closing indicating the debits and credits to the buyer and seller. An attorney is helpful in explaining the nature, amount, and fairness of closing costs. The deed and mortgage instruments are signed, and an attorney can be assure that these documents are appropriately executed and explained to the various parties.
The closing process can be confusing and complex to the buyer and seller. Those present at the closing often include the buyer and seller, their respective attorneys, the title closer (representative of the title company), an attorney for any lending institution, and the real estate broker. There may also be last minute disputes about delivering possession and personal property or the adjustment of various costs, such as fuel and taxes. If you are the only person there without a lawyer, your rights may be at risk.
Buying or Selling a House? An Attorney Can Help
A broker generally serves the seller, and the lender is obtained by the buyer. Both want to see the deal go through, since that is how they will get paid. Neither can provide legal counsel. If you want peace of mind when making one of the biggest purchases of your lifetime, you should consider speaking with an experienced real estate attorney.