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Legal Issues You Need to Know Before Buying a Home


— August 12, 2020

Since there are numerous legal problems that can develop during the purchase of any real estate, it only makes sense to contact a real estate attorney now to get any questions answered.


Legal issues come up in virtually all aspects of life, and buying a home is certainly no exception. There are numerous legal problems that can turn what should be a wonderful experience into a nightmare. If you’re currently shopping for a home, it’s vitally important to understand why having a legal professional on your side is crucial.

Choose an Attorney Early in the Buying Process

While there is no requirement that homebuyers contact an attorney prior to shopping for a home, doing so can be helpful. That’s especially true if you’ve never purchased real estate in the past. There are numerous legal issues to deal with during the home shopping and buying process, so reviewing what to expect with an attorney from the Kelley Legal Group, PLLC is always a good idea. An attorney will explain the various legal requirements buyers encounter when shopping for a new home. Below are a few examples.

Representation Contracts

The first legal document a home shopper may be asked to sign is a representation contract. When a representation contract is in place, real estate agents have a fiduciary duty to their clients. The contract specifies what each party is agreeing to, making it far easier to understand the relationship. The attorney will explain the pros and cons of representation contracts and discuss the nuances an agent may gloss over.

Mortgage Pre-approvals

Very few buyers have the cash on hand to finalize a home purchase. That means they need to obtain financing from a lender. A mortgage pre-approval allows the buyers to know what they can afford to spend and, at the same time, lets sellers know the prospective purchaser has the wherewithal to buy the property. Attorneys frequently advise clients on matters related to obtaining mortgages.

Purchase Agreements

Two men with laptops reviewing paperwork; image by Helloquence, via Unsplash.com.
Two men with laptops reviewing paperwork; image by Helloquence, via Unsplash.com.

Buyers and their real estate agents complete a purchase agreement when a suitable home has been located. The terms of that document are legally binding, so it makes sense to have an attorney review the document prior to signing it. Since purchase agreements are often amended during the negotiating process, it’s not always easy to have an attorney review all the details, but take the time to discuss how to approach completing the document with an attorney.

Dealing with Contingencies

The majority of purchase agreements have one or more contingencies. In many cases, the purchaser will make the agreement contingent on closing the sale of another home. Most purchase agreements also include a contingency requiring a home inspection. If the inspection results in deficiencies being discovered, the contract can be renegotiated or nullified.

Reviewing Closing Documents

Real estate closings involve a great deal of paperwork. Reviewing that paperwork shouldn’t wait until the closing. It’s vitally important to have a real estate attorney review all the documents prior to the closing. It’s too easy to miss important issues if all the documents are not gone over prior to the closing. Your real estate attorney will want to have all documents in hand a few days before the closing is scheduled.

Got Questions?

Since there are numerous legal problems that can develop during the purchase of any real estate, it only makes sense to contact a real estate attorney now to get any questions answered. Don’t wait until the last minute to seek legal advice.

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