Introduction

Many consider buying or selling real estate as the largest financial transaction people and businesses enter into. Even with the stakes being so high, very many of these people fall victim to some common mistakes in real estate contracts, often leading to very expensive consequences. Here are some common pitfalls and how a lawyer can help you avoid them:

1. Incomplete or incorrect property descriptions

One of the most fundamental yet crucial elements in any real estate contract is an accurate description of property. If there are mistakes here, disputes will arise on exactly what is being bought or sold. Legal descriptions must be clear, detailing lot numbers, boundaries, and easements. The attorney will ensure that these descriptions are complete and accurate to avoid potential future disputes.

2. Unclear Terms

Real estate contracts should be specific and unambiguous. Vague words create room for multiple meanings, some of which bring about disputes. An example is whereby a contract specifies certain repairs, but the nature and standards these repairs achieve are not indicated. A lawyer can draft or go through a contract to ensure all terms are well-defined to avoid miscommunication.

3. Negligent Failure to Conduct a Title Search

Conducting a title search is important to verify the seller’s legal right to sell, to find any encumbrances, such as liens or easements, which could affect the transaction. If this is not done, or is done inadequately, serious repercussions can occur—like discovering after purchase that a lien exists against the property. That’s where an attorney comes in: to conduct an appropriate title search and resolve any issues prior to the completion of a transaction.

4. Missing Contingencies

Contingencies are conditions that must be satisfied if a real estate deal is going to close. Common contingencies include approval of financing, satisfactory results from a home inspection, and the sale of the buyer’s present home. If no suitable contingencies exist, a buyer could find themselves with no recourse if something falls through. Attorneys ensure the various appropriate contingencies are in the contract and are very clear.

5. Not Addressing State and Local Laws

Real estate transactions are governed by state and local laws, most of which differ considerably. Ignoring these laws could lead to legal complications, including the contract becoming invalidated or substantial delays. Lawyers are very conversant with the laws and hence will ensure the contract is in complete compliance, avoiding legal pitfalls.

6. Misunderstanding the Financial Terms

Real estate contracts can involve very complex financial arrangements: mortgages, interest rates, and payment schedules. Misinterpreting the terms may result in financial burden or even the breakdown of a transaction. Attorneys can interpret such terms in simple language for the parties to understand, so both parties know their rights and obligations regarding finance.

7. Failure to Provide for Future Use

Buyers often forget to project how they are going to use the property in the future and may come into conflict with the zoning laws or even the rules for a homeowners’ association. If for instance, a buyer intends to run a home-based business, yet the property is zoned strictly residential, there can be certain legal problems for him. Most of these issues can be foreseen by a lawyer who will make sure that the intended use of the property is permitted by the current laws.

8. Inadequate Disclosures

Sellers are required to disclose known problems about the property, whether these be of a structural nature or environmental in nature. Poor disclosure can lead to a lawsuit from the buyer. Real estate lawyers advise sellers of what type of disclosure they are required to do and ensure that they disclose all information so that the seller is not subject to potential litigation.

 HOW AN ATTORNEY CAN HELP?

• There are numerous benefits to retaining a lawyer for your real estate transaction. Follow lawkins to get following benefits
• They have vast knowledge of real estate law and experience in similar transactions that equips them to spot and address issues way in advance.
• You can get your contracts reviewed or drafted by an attorney, so that it becomes free of any ambiguity, comprehensive, and legally correct, taking care of your interests.
• On your behalf, attorneys are able to negotiate for the best possible deal.
• If problems arise, there are solutions—lawyers who can help clients find their way out of legal complexities so as not to incur expensive mistakes or delays.