The Law Offices
of Jimmy Johnson PLLC is firmly committed to providing the best possible
individualized service to all of our clients. We represent clients in all commercial and
residential real estate proceedings and transactions. We are
familiar with the property issues which may arise such as Surveys, Title Examination, Loan
Documents, Deeds, Leases, Easements, Access Problems, etc. Indeed, the Law Offices of Jimmy Johnson PLLC
has the legal tools in place to handle Land Sale or Purchase transactions
from start to finish.
Our
services include the preparation of all of the necessary paperwork for a Purchase
or
A Contract
of Sale is an agreement for the purchase or sale of real estate. A Contract of Sale is usually prepared by your
Real
Estate Broker in a standard form contract and thereafter submitted to
your attorney for further reviewing and refining.
What Is Attorney Review?
After the
initial Contract of Sale is signed by both parties, the buying party will have
three business days to have the contract reviewed by his or her attorney. During this time period, the Buyer’s
attorney will review the contract and prepare a Rider or
Letter Addendum to the contract. The rider will create additional provisions to
the contract, addressing any issues that have not been already addressed by the
initial contract. In a situation where
the Law Offices of Jimmy Johnson PLLC represents the Buyer, then our firm would
try to extend the deadlines for the Buyer’s Mortgage Commitment and Inspection Report.
This
extension of deadlines would give the Buyer ample time to get out of the
transaction if the Inspection Report is not favorable to the Buyer or if the
Buyer is not able to secure a mortgage for the property. Once the attorneys for both parties and their
clients have accepted the newly added terms, then the attorneys will sign off
on the final rider or addendum and inform all parties that attorney review is
concluded. All time periods (for the mortgage contingency
and inspection results) will start from this date (not the date the Buyer signed
the initial contract with the Real Estate Broker).
Some of the Issues that
May Be Addressed During Attorney Review:
1. What is Included in the
2. The Amount of the Down Payment
3. The Date of Settlement and Possession
Date
4. Contingencies to the
5. Is the Transaction is an “As-Is”
Deal.
Between Attorney Review and Closing,
the Buyer Is Responsible for the Following Things:
§
Home Inspection:
Generally, a Structural Home Inspection is recommended if the Buyer is buying a
home. A Buyer is responsible for having
the home inspected. This will provide the Buyer the chance to go
with the inspector around the property and learn more about the recommended
maintenances for the new home. Also, this will give the Buyer as the
Seller the chance to discover other necessary works may be needed to be done in
the property. However, depending on the age and condition of the
building, it may necessary for the Buyer to get the Home inspected for the
following issues: termite radon, septic, well, home heating oil tank, or lead paint. This
is an Out of Pocket Expenses that the Buyer must pay directly to the
Home inspector. Under the law, the Buyer has 10 days to complete the Home Inspection
and to submit the results to the Seller’s Attorney. Thus, after
the attorney’s review, the Buyer should schedule an appointment with a Home Inspector
immediately. So, after the inspection, the Buyer’s Attorney would have to
submit any defects to the Seller’s Attorney to address. This is usually done with a credit to the
Buyer for the costs of repairing the defects at closing or an arrangement to
repair of the defect.
§
Title Insurance, Title Searches
and Survey:
A Buyer for the
property will be required to Purchase Title Insurance, which is
an insurance policy that covers the Buyer’s ownership interest and the mortgage
interest of the Buyer’s lender. The Title Insurance will show any Judgments
or Liens against the parties or the property itself, including the Seller’s
Mortgages or Tax Liens on the Home.
Note: The Buyer’s Mortgage Company will
generally require the Buyer to have a Survey and Title Searches done for the
property. In fact, the costs for the Title insurance, Title
Searches, and Survey are paid at closing.
§
Mortgage Costs:
Since each
mortgage company may have specifics costs and fees, thus, Mortgage Closing Costs
vary by the mortgage companies. Therefore, the Buyer should speak
with the Buyer’s lender, Banker or Mortgage Broker about their specific costs
and fees. Some Mortgage companies collect their fees upfront while
others are paid at closing.
§
Attorney’s Fees:
Generally, Attorney’s Costs and Fees are paid at the closing.
Documents Required:
1. Once the closing is scheduled, the
Seller
will provide a Payoff Statement to show the balance due on any Mortgage
Seller has to pay on the loan in full.
2. Depending on the type of property,
Seller may be required to provide a Certificate of Occupancy for the Property. Also,
a Smoke Detector and Carbon Monoxide Certificate will have to be obtained
through your local fire department.
Buyer’s Expected
Closing Costs:
§
Buyer’s
biggest closing expenses will be to Pay Off Any Existing Mortgages on the Home.
§
If
the Services
of a Realtor is utilized, then the Real Estate Commission will be due
at closing and paid out of the proceeds.
§
Any
Taxes
and Condo Maintenance will be adjusted at closing.
§
After
the Buyer paid his or her attorney’s fees, the Balance of the Proceeds will be
provided to the Buyer.