Avoid Costly Legal Mistakes When Buying or Selling a Home in the Murrieta, Temecula Valley, or Inland Empire
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Buying or selling a home involves intricate legal matters, both significant and subtle, that demand careful consideration. Residential real estate transactions, being complex, require attention to even the smallest legal details. Failing to address these nuances correctly can escalate into major issues.
To safeguard your interests in the process, staying well-informed is essential. This report highlights three common legal pitfalls that could incur costs if not properly addressed. Recognizing these issues is crucial for anyone engaged in buying or selling a home.
Given the multitude of legal considerations, your initial step should involve engaging reputable and experienced professionals. When selecting a real estate agent in Murrieta, Temecula Valley, or the Inland Empire, prioritize extensive experience and connections. Additionally, seek guidance from a local real estate lawyer to ensure comprehensive protection of your interests.
Make informed decisions by understanding the legal landscape, and secure your real estate transactions in Murrieta, Temecula Valley, and the Inland Empire.
Three Legal Issues That Could Cost You Thousands
This section delves into three critical legal issues, providing insights and recommendations to mitigate potential risks.
1. Survey Clause
Homebuyers have the right to have a survey clause added to the real estate contract on the home they wish to purchase. When this home is yours, you should be aware of the implications of this clause. Evaluate each agent’s responses to these 10 questions carefully and objectively. Who will do the best job for you? These questions will help you decide. Your current survey may no longer be up-to-date if you have had a swimming pool built, or an addition added, since the survey was drawn up. If your survey is not up-to-date by these standards, the buyer may request
an updated survey. The homeseller may be required to bear the cost to have a new survey prepared. The cost for this process typically runs anywhere from $700 to $1,000. This is $700-$1,000 less that you will net for your home. An experienced real estate agent should provide you with a survey and it is up to the buyer to decide if the survey is acceptable. Your agent should be able to advise you appropriately when dealing with this issue, but if you or your agent are unsure, you have the right to consult your lawyer before you sign the offer. Don’t be afraid to take this important step, as thousands of dollars could be riding on the decisions you make at this point.
2. Home Inspection Clause
Some real estate transactions have fallen through because of the wording of the inspection clause. This clause previously stated that the buyer has the right to rescind their offer if they were dissatisfied with the outcome of a home inspection. In some cases, this was used unfairly against the seller when a minor repair issue would give a buyer a legal loophole to their change of heart. Meanwhile, the seller lost both time and money because of this technicality. First, they may have declined other offers (offers which may now be lost forever) in favor of the one which has now fallen through, and missed the opportunity for other offers which might have come through during the current negotiations. Secondly, their home may have been unfairly labeled as a “problem house” which could cost them in terms of the dollar amount of subsequent offers. And thirdly, they then found themselves back on the market, incurring the inconvenience and additional carrying costs of having to market their property for a longer period of time. This clause should read that the seller has the option to fix any items that the home inspection flags. This wording protects both the buyer and the seller. The buyer is assured that the home they are buying meets objective structural standards, and the seller is protected against the whim of a buyer who changes his/her mind. Not all contracts will be written in this way. Make sure you are working with a lawyer experienced in real estate matters to ensure your interests are protected.
3. Swimming Pool Clause
If the home you are buying or selling has a swimming pool, there should be a specific legal clause which addresses this costly item. Some contracts are written to provide a warranty to the pool to survive closing. The broadness of this wording protects buyers, but is not necessarily in the best interest of sellers who might instead request that the clause be worded to indicate that, at the time of closing, they believe the pool to be in good working condition. The existence of a pool in any home negotiation is certainly reason enough to ensure that you seek advice from a real estate professional and obtain legal counsel so that your interests are represented properly. By being aware of these and other legal issues, and by seeking advice from an experienced real estate professional and obtaining legal counsel, you can protect yourself against unnecessary cost and potential hardship.
To Discuss Your Home Sale or Purchase, Call or Text Today & Start Packing!
