BUYING
Purchasing a property creates significant liability and it can be a stressful venture. You can limit your liability and make the process easier on yourself by hiring a qualified real estate attorney.
Fitzgerald Law Offices has represented various lenders in thousands of real estate closings. It is acceptable and quite common for a law firm to represent the lender AND the Buyer simultaneously. Dual representation is possible because the interests of the lender and the interests of the Buyer are identical, namely, making sure that the title to the property is "Good, Clear, Marketable Record Title".
The benefits of dual representation include discounted attorney fees and having the convenience of one point of contact for both your Purchase and Sale Agreement status and Loan status. This saves you time and frustration of having to coordinate between two law offices for one transaction.
The process of buying a property can be simplified into the following three steps:
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Offer to Purchase Real Estate
After getting pre-approved for your loan and finding a property you would like to purchase you will submit an “Offer to Purchase Real Estate” to the Seller or Seller’s agent. This standard form document has the basic necessary information for the Seller to make his or her decision to sell the property to you. This information includes: sale price, expiration time/date of offer, deadline for executing Purchase and Sale Agreement and proposed closing date. In addition, there may be other contingencies regarding your mortgage, home inspection and condition of the property noted in the Offer
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Purchase & Sale Agreement
Once the Seller has accepted your offer you will have 7-10 days, depending on the language contained in the offer, to sign a Purchase and Sale Agreement. Before signing the Purchase and Sale Agreement we suggest you hire a home inspection company. We recommend Tiger Home Inspection (1-800-62-TIGER). A home inspection is crucial to identifying any problems that can not been seen by the untrained eye. If problems are identified they can be corrected as a contingency of the Purchase and Sale Agreement.
The Seller’s attorney or real estate broker will draft the Purchase and Sale Agreement. Because real estate brokers and Sellers’ attorneys represent the interests of the Sellers, it is not difficult to understand why the Purchase and Sale Agreement is drafted to favor the interests of the Seller. Fitzgerald Law Offices will make adjustments and additions to the Purchase and Sale Agreement so that it is a more balanced contract, and to make sure that all of your interests are protected. This is one of the most important aspects of our representation.
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Closing
Once the Purchase and Sale Agreement has been executed you will continue to work with your mortgage professional and provide the necessary documentation for loan approval. If you are purchasing and home you will need to obtain a homeowner’s insurance policy as a requirement for your lender prior to closing. We recommend T.F. Gallagher Insurance (617-364-3010). Once your loan has been approved, or “cleared to close”, your lender will prepare your closing documents. At the closing you will sign the lenders’ documents and any documents necessary for recording at the Registry of Deeds. It is not until the deed has been recorded Registry of Deeds and the loan has been funded, that you will be the rightful owner.
Another crucial component of purchasing property is Title Insurance. Virtually all lenders on the purchase of real estate require the borrowers to purchase title Insurance. Although you are required to purchase what is known as a "Lender’s Policy" of title insurance, you are simultaneously offered at the time of closing an "Owner’s Policy" as well. Quite simply, the "Lender’s Policy" covers the interests of the lender for undisclosed defects in the title, and the "Owner’s Policy" simultaneously insures the interests of the Buyer of the property. There is a reasonable, one-time premium for this insurance, and the policy lasts for as long as you own the property for undisclosed defects in the title. It also typically carries with it an "Inflation Rider", which makes sure that the coverage takes into effect increases in the value of your home over time. Although an "Owner’s Policy" is optional, 96% of our clients request and purchase one. It is generally considered an excellent insurance value, and we recommend it to all of our clients.
For more information on the Owner’s Policy see:
http://www.firstamne.com/policy/eagle_owner.htm