Buying and selling real estate is a major financial transaction, for both parties involved. Thus it makes sense that each side wants to have their interests protected and make sure their investment is well made. If you’re considering buying or selling real estate, here are five tips to keep in mind.
Do your research
If you’re selling your home, you want to make sure you price it appropriately according to the market value. If it is priced too high then no one will purchase it and if it is priced too low then you will not be able to take out the equity out of the property that you have earned. Understanding the market, and comparable out there, will help you to price your property just right.
On the other hand, if you’re buying a property you want to make sure that you are not going to overpay for what it’s currently worth and your investment isn’t going to be worth less than what you owe on it (if you have a mortgage).
Request everything in writing
It’s crucial that you ensure everything binding is in writing, otherwise it’s going to be like it never happened if one party wants to back out on a part of the deal.
If there are specifics of the deal, like closing date or chattels to be included, make sure they are in writing, in the offer.
Thoroughly review your purchase agreement/offer
Before you officially sign any purchase agreement or offer, make sure you thoroughly review the document and the conditions in it. That will be a legally binding document so anything in there you will be held to, and that is why it’s imperative to make sure you know what it contains.
Disclose material latent defects
Owners must disclose any material latent defects – like cracks in the foundation that may have been covered up or an area of the basement that leaks every spring – to any new potential owner. It’s important to be honest during this process as there could be legal implications if the new owners are not made aware of the situation before purchasing the property.
Consult a lawyer
Real estate lawyers are experts in this area of the law and it is their duty to act in your best interest and protect you during this major transaction. Real estate agents are not allowed to advise you on any legal aspects of a real estate transaction so it’s advisable to make sure you have a real estate lawyer, even when working with an agent. Lawyers can help you through the entire real estate process and even explain all parts of the contract transaction to you, should you have any questions.
Contact Minhas Lawyers today
Are you considering a real estate transaction? Contact us today for the advice of a real estate lawyer.
Minhas Lawyers LLP is a multi-practice law firm based in Mississauga. We advise and represent clients across various segments and practice areas.
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