Residential

-Are there liens on the property and if so, will they be paid in full or closing?

-Do the Sellers own 100% of the property?

-Are all owners alive?

-Have you arranged for appraisal?

-Have you arranged for an inspection period?

PURCHASING A HOME

Most residential real estate transactions are completed without the involvement of an attorney. However, as the price of homes continues to increase, the purchase of a home will likely be the most expensive purchase any of us make. This fact makes it especially important that you know exactly what the paperwork requires of you and what obligations are placed upon the Seller.

In general, there are 2 different types of agreements: Paying for the property from the Buyer’s cash on hand, in which case there will be no lien on the property or obtaining a mortgage from a lender who will loan money and have a lien on the property. There are other types of agreements but they are not used as frequently: Seller Financing, Wrap-Around Financing and Contract for Deed. Our office always recommends against the “Wrap” and/or Contract for Deed.

The process of purchasing a home is begun by entering into an agreement known as an Earnest Money Contract. This is the document that sets out the agreement between the Buyer and Seller and includes, among other things, price, down-payment, closing date, mortgage terms (if any) etc.
Although all of the terms of the earnest money contract are very important, there should always be a provision for the Buyer to have an inspection, a survey, an Option Period and the requirement that the transaction be closed at a Title Company.

Realtors licensed by the Texas Real Estate Commission are all required to use the same form for the Earnest Money Contract but are restricted as to what they may add to it or delete from it. You are not required by law to have an attorney involved in your home purchase transaction but if you have any questions about any of the provisions of the Contract you should consult an attorney. Involving an attorney will cause your transaction to cost a bit more but in the long run could save you quite a bit of money or prevent you from entering into an agreement that is not at all favorable to you.
After you sign the Contract, you must obtain an inspection of the property (including a pest inspection) within the time you have reserved in the Option Period. You will also have to object to issues in the title company commitment with which you are not comfortable and the survey within a certain amount of time in accordance with the contract.

After you have determined that you are satisfied with these items, you will go to closing at the title company on the date set out in the contract. The title company will take care of all of the financial and recording requirements and if it is a “cash” transaction, you will receive a Warranty Deed from the Seller and if you have gotten a mortgage you will receive a Warranty Deed from the Seller but then you will sign a Deed of Trust (mortgage) and a Real Estate Promissory Note for the amount of the loan and BINGO, the house is yours.

THE INFORMATION CONTAINED HEREIN IS NOT TO BE CONSIDERED TO BE LEGAL ADVICE. SHOULD YOU HAVE ANY QUESTIONS OR WOULD LIKE FURTHER EXPLANATIONS REGARDING THE PROCESS OF PURCHASING A HOME, PLEASE CALL OUR OFFICE AT: 915-779-3619