 |
|
 |
 |
 |
 |
 |
 |
 |
 More Examples of Special Contracts This section of the book deals with real estate transactions and some basic legal concepts in this area. It is not specific to medical problems, but is intended for all persons to assist in a general understanding of legal issues. Perhaps the most common transaction in the area of real property is the purchase or sale of a residential property. In many states, real estate brokers, title companies, and escrow companies routinely handle purchases of residential property, without the services of a lawyer, in other states, attorneys handle various parts of the transactions. Should you have an attorney assist if you are buying or selling a house? Obviously, if you live in a state where attorneys play an essential role in the sale, you need an attorney. In states where an attorney is not required, it may still be worth a few hundred dollars to retain an attorney, particularly to draft or review the original contract and escrow instructions. There are many instances in which having an attorney at the outset has assisted in a smooth closing process. Contrary to the popular view that attorneys will slow down or "wreck" a potential real estate sale, it is the author's experience that real estate purchasers or sellers should have legal counsel. Any deal that is not favorable to you should, in fact, not close. An attorney is likely to be the most independent party removed from the transaction, and after all is hired to represent only your interests. Most Plan Attorneys have a long list of clients who were purchasers or sellers involved in lawsuits over real estate, and who did not bother to consult an attorney prior to making an offer to purchase a house or listing a house with a broker for sale. TYPICAL STEPS INVOLVED Generally the following steps are involved in a routine real estate transaction: 1) Listing by Seller; (2) Offer by a Buyer; (3) Counter Offer by Seller; (4) Contract between Both; (5) Escrow Instructions; (6) Financing; and (7) Closing. The most important steps from a legal standpoint are the terms of the written offer, which may become part of the purchase contract. One must be careful to review the offer and the contract, to make sure that unlikely contingencies, e.g., the house having an infestation of termites, are provided for in the contract. Also, every one of the main items in the deal, such as what happens if escrow does not close on the specified date, should be addressed. Because this is an area where good legal advice cannot be ignored, there is no attempt to discuss each and every aspect of the purchase and sale transaction. This task is better left to the lawyers. However, several common problems can arise in any real estate sale and are worth discussing.
|
