Owning a house probably tops the order of priorities for most of us as this is one of the most prized things we dream often. Though it calls for a substantial investment, the availability of loans at competitive rates has made house shopping much easier. These days, you can find people in their mid-thirties working in IT sector buying houses in cash or on loan, thanks to their good packages.
But remember, a house is the most expensive single item most people ever buy. You should be careful while investing your hard-earned money or loan while purchasing a house. Once you have decided on the type of home and location you want, start looking for a house, it is important to have some basic information about legal matters before you sign any contracts or make payment.
It has generally been seen that most people take the services of real estate agents to buy and sell their homes. As a buyer, the first thing you need to understand is that the agent generally works for the seller. But before approaching the agent, you should decide upon the type of property you need. Agents will show you house they think will interest you and provide all sorts of advice and suggestions. This is often very helpful. But always keep in mind that the agent works for the seller and the objective is to get the highest prize in the shortest period of time. In many states, there are agents who act as buyers’ agents.
There are some areas of concerns for buyers which they want to be effectively addressed while buying a house. “Title” is one thing that concerns buyers the most. You as a buyer would always like to receive a “clear title” from the seller. This means that there should be no existing loans on the property and no defects in the title. You can find out title defects by checking the municipal records where deeds, liens and judgments are recorded. If you are buying a detached single-family house, make certain to ask about zoning, not only for the specific property but the neighborhood. If zoning allows for uses other than residences, you could be faced with nearby development which may be undesirable. If you are looking for a condominium, house, duplex or any type of unit in a planned community, it is important to find out how common areas are managed. Common areas are like roofs, walls, halls, driveways or any type of structure which is shared by unit owners. If you are thinking of buying any of these properties, please read the rules and regulations of these planned communities.
Now coming to the most crucial thing that is the agreement of sale, buyers should be very careful before entering into an agreement. When the seller agrees to your bid amount, you both are required to sign the agreement of sale deed. This means you as the buyer will pay a deposit often called the earnest money. In returning for your deposit, the seller cannot accept any subsequent offer from another buyer. But the down payment is a different thing. A down payment is the money you must come with on your own to get mortgage from your lender. The agreement of sale is the key to the entire transaction. Every detail should be included.
The closing of sale is the key to the entire transaction. Every detail should be included. The closing is the formal proceeding where the transaction is made final. The parties, including the buyer and seller and their attorneys, the realtor and a bank representative (if you are getting a bank mortgage) meet to exchange the deed for money.
So, you should be careful while buying a house. You may drive immense pleasure from purchasing a house but you should also be aware of the pitfalls. |
