For most people, a home is one of the biggest financial investments of their entire life, and that’s why sellers and buyers enter into formal written contracts for home sales. These contracts often involve real estate laws that might seem overwhelming for those who don’t work for real estate law firms in Irvine, CA. To help clients make sense of the law, below are five important facts to know when buying a home.
A buyer can hire a third-party inspector to perform an inspection of the home within a certain time. An inspector may include an engineer, a roofer, a pest control expert or a contractor who can find any hidden issues with the home.
Disclosure Statements
Disclosure laws can vary by jurisdiction, but these documents are intended to inform the buyer about a property based on the seller’s knowledge and experience. The disclosure usually lists upgrades, renovations, defects, the existence of neighborhood nuisances and other concerns. However, a buyer should still hire a third-party inspector, even after receiving the seller’s disclosure notice.
Contingency Waivers
Contingency waivers protect the buyer’s interests. Here, they allow the buyer to terminate the deal and receive a refund in cases where they are unable to get financing or they discover problems or hazards in the home that were not reported.
Reporting Payments
If the buyer plans to pay in cash, the seller is required by federal law to report a transaction in excess of $10,000. It’s the federal government’s job to determine whether the money being used for the transaction was obtained legally. The government’s report includes information about the buyer, real estate agents, title company and lawyers.
Signing the Purchase Contract
The buyer and the seller should agree to and sign the purchase contract; otherwise, it will not be legally binding. The contract is the document that lists all the information on the transaction. It lists the property being sold, the names of the parties involved, the price, the mortgage contingencies and the date of closing.
For a hassle-free home purchase, trust real estate law firms in Irvine, CA. Call the office today or visit The Law Offices of Neil J. Cacali online to schedule a free consultation.
