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.
services include the preparation of all of the necessary paperwork for a Purchase
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:
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
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.
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.
Generally, Attorney’s Costs and Fees are paid at the closing.
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.