FAQs

A Purchase and Sales Agreement is the formal written document prepared following the acceptance of an offer on a property. This is a legal record that identifies the property, the purchase price, the buyer and seller, the terms of the sale, as well as any closing adjustments, unforeseen events and other preconditions to the transfer of the property.

Yes. Since this is a legal, binding document, it is recommended that an attorney review the P & S before you sign it. Although this Agreement is usually a standard form, each transaction is unique and may need to address the individualized concerns of each person involved. An attorney experienced in the area of real estate can advise you on language that can be included in your Agreement - prior to signing - that could better protect your interests.

This is the process whereby the buyers and sellers process and exchange documents, make required payments or adjustments, and conclude the formal transaction of transferring real property. Your attorney will attend to almost all of the details surrounding the closing, including alerting you in advance of the items or funds needed.

“Title” refers to the property‘s legal history. It includes all the facts of its ownership and it also proves ownership.

A Title search is the locating of all recorded documents regarding a specific property. A Title exam involves the reviewing of these documents to determine its condition. This is generally the most important legal work in the real estate transaction. If a problem exists in the Title, options may be available to rectify the issues. Your attorney can investigate or initiate these options.

Title insurance protects against loss resulting from defects in the title. The lending institution requires a lender policy to be purchased and it is recommended that a new home owner also purchase an owner‘s policy to protect their investment. Unlike other insurances, title insurance is paid once at the time of closing.

The Lender Policy protects the lender‘s interest based on the amount of the loan provided to the buyer. This policy is required by the lender and is to be paid by the borrower. The Lender Policy is in effect only as long as the loan is outstanding, which means that you may be required to purchase a new Lender Policy if you ever refinance your loan at a later date.

The Owner Policy protects you, the borrower - or mortgagee - on the entire value of the property as long as you have an interest in the property. It protects your heir‘s interest in the property if the property is transferred to them. It also protects the warrantees you give when you transfer the property. Although it is not mandated, an Owner Policy is strongly recommended. It is important to know that your Lender Policy does not cover your interest in the title. To have your investment protected, it is important to have an Owner Policy.

In real estate, a Deed is generally a conveyance instrument. Your Deed is evidence that the title to a property has been transferred to you upon completion of the real estate closing.

There are four ways an individual may hold Title to a property. The way Title is held to real property can have serious legal consequences, so this decision should be given serious thought. Your choices are with regards to tenancy:

• Sole Tenancy
  This type of ownership means an individual has an interest in property in his or her name alone. If the individual is married, his or her spouse relinquishes any right, title, or interest in the property. A will would be needed so that title could pass to heirs of his/her choice upon death.
• Tenants in Common
  This type of ownership means two or more people have an undivided interest in property, without the right of survivorship. This type may result in unequal shares in the property but entitle equal use and possession to each owner. Upon death of one of the owners, his/her interest passes to his/her heirs or devisees.
• Joint Tenants
  This type of ownership involves two or more people with an equal and undivided interest in the property, with the right of survivorship. Upon the death of one owner, interest passes to the surviving owner and not to the heirs or devisees of the deceased.
• Tenants by the Entirety
  This is a type of joint ownership only available to legally married couples whereby each owns the entire property. In the event of death of one of them, the survivor owns the property without probate (that is, without legally distributing the deceased‘s property under a valid will).