Contracts are probably involved in every major purchase, investment opportunity and legal action you take. When it comes to real estate contracts, they are sometimes referred to as a purchase and sale agreement, contract for sale, purchase contract, agreement to purchase or agreement for sale. Always read contracts thoroughly and make sure you understand everything. You might want to have a lawyer look over any contracts before you sign them. Learn more here about contracts and how to protect yourself.
Mortgage lenders require appraisals before issuing home loans. What happens if the home you want to buy appraises lower than what the seller wants? It depends on the contract. The buyer may lose his earnest money if the home does not appraise out and the seller is unwilling to lower the price. It's up to the buyer to cancel the home buying contract if the contract permits him to do that.
A buyer asks about a condominium sale. She purchased the condominium because the living room had a partition in it. Before the condominium sale is finalized, the condo board wants the seller to remove the partition. The buyer no longer wants to go through with the condominium sale. The changes to the unit may have violated zoning laws or homeowners association regulations. What are her rights?
When you're selling a home and a buyer wants to buy the property as a gift is there anything you need to watch out for? Should the earnest money, which may become a down payment, be handled in a special fashion? It's critical that the transaction be handled with care to ensure estate planning and gift tax considerations are taken into account.
When you receive money from a canceled contract, it's usually treated as ordinary income for taxes. When a real estate contract goes bad, the money put into escrow is treated as income as opposed to capital gains. The escrow money will be taxed at a higher rate because the ordinary income tax rate is higher than the capital gains tax rate.
A seller says he's selling his house for sale by owner. He wonders about contract risks when selling houses for sale by owner. The seller says the buyer offered to buy the home without putting money down and without seeing the home first. Sellers should have a real estate attorney help with contracts when selling houses for sale by owner.
Can you can cancel a mortgage refinance loan after having signed the paperwork. It depends on how soon after having signed the refinance documents you change your mind and some lenders may charge fees for backing out. Some contracts list specific cases when it is OK to cancel a loan.
A buyer says he's received a foreclosure notice on his home after signing a real estate contract and paying the seller on time. The buyer should see a real estate attorney to talk about this real estate contract and the foreclosure notice. The real estate attorney will help the buyer in dealing with the foreclosure notice and what the seller
When you're building a home next to a vacant lot you need to be aware of plans for the property next door. What can you do if the builder of new construction in your neighborhood follows different plans? It helps to talk with a real estate attorney to understand your recourse when you build a home and then plans for the vacant lot next door change.