Tips for Sellers of Real Property

The following are few tips for Sellers of Real Property:

#1 - The sales contract.  The sales contract governs the terms of the sale.  Depending on the market and buyer there are various sales provisions that can make a world of difference.  The Seller should should fully understand the terms of the contract.  The seller will not be forgiven because they did not read the contract or they didn't understand all the terms.  The contract also states what actions constitute a breach of agreement and also what remedies will exist to rectify any breach.  Damages are another provision that can be agreed upon and written into a contract.  This is the chance for the seller describe in detail what property will be sold, if any easement will be reserved, and to spell out the requirements for any buyers so that the seller is secure in identifying the buyers who are prospective from potential.

#2 - The Settlement Agent.  The settlement agent handles the closing.  There are two types of Settlement Agents: Lawyers and non-lawyers.  Whats the difference? non-lawyers cannot draft legal documents or give legal advice.  Does that matter to the buyer? It should.  Legal drafting involves the preparation of the Deed.  That is the Document that grants the buyer ownership.  Without that paper, ownership of the property will be in question.  The recording process uses deeds to keep track of who owns what and who owned the land before the current Seller.  When a lawyer drafts a deed he must track down who the previous owners of the property.  The lawyer does this by visiting the county or city recorder's office where the land is located.  The county recorder records the deeds.  The county recorder records the Deed by the grantor.  This process of finding all the previous owners is what is called a title search.  Through a title search, the lawyer will also review each deed.  When reviewing each deed they may stumble across an easement.  An easement is when a seller granted to a third party, or reserved in himself some right associated with the property.  A commonly seen easement is where the seller retains the right to cross over the property.  The title search will also reveal every deed of trust properly recorded.  A deed of trust is where the owner of the property conveyed the property in to a trust and in return received money( usually to purchase the property).  This is how most people buy their property.  The title search should pick up every deed of trust and corresponding certificate of satisfaction, which tells us that the loan was repaid and the property transferred out of the trust.  

#3 - Closing. At the closing the attorney receives the money from the buyer and places the money in trust.  The placement of the buyer's funds in trust is an important step for the seller, since, at the end of the deal, money is what the seller desired.  The attorney runs the funds through his trust account and will not record the subsequent deed until he is assured the funds are in his trust account.  The attorney does this to prevent fraudulent buyers from receiving property they cannot pay afford.  The attorney will also have conducted a title search indicating any easements, outstanding liens, or taxes.  The attorney will draft the deed for the seller to sign.  The attorney will talk to the old lender's and arrange for the balances to be paid and will also pay any other judgments or liens against the property. This will ensure that the buyer receives the land clear of any of the prior owner's loans or judgements, relieving the Seller of possible duties owed under a general warranty or special warranty deed.   

These three areas are complex and have been simplified to provide some clearer perspective of the real estate transaction.  Seller's need to remember that their is a lot of places during this transaction where things can go wrong or simply overlooked.  Contact my office and we will guide you through the process.