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Boston Real Estate Lawyers |
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 The Boston real estate lawyers at Joshua Spirn and Associates can help you with your real estate needs in the Boston Massachusetts area.
YOUR FIRST HOME: LET THE BUYER BEWARE
The scenario goes like this: A Buyer decides
to buy a home. The Buyer finds a real estate
broker. The broker shows the Buyer many different
properties and the Buyer finds the home of his or
her dreams. The broker, sensing the Buyer's
enthusiasm, has the Buyer sign a document called
an Offer to Purchase. The Buyer thinks to himself
or herself, should I sign the document? Should I
seek legal counsel? What does this all mean? Or,
the Buyer may not even consider the legal
consequences of what he or she is signing. What is
the Offer to Purchase?
THE OFFER TO PURCHASE
The Offer to Purchase is a binding contract
which the prospective buyer signs when buying real
estate. It is basically the contract which governs
the deal. It may be represented to the Buyer that
it is not binding because buyer and seller must
also execute a second contract known as a Purchase
and Sale Agreement. However, recent Massachusetts
case law holds to the contrary. Remember, the
Sales Broker represents the Seller and only acts
in the best interest of the Seller. The Buyer will
also be asked for an earnest money deposit to show
good faith usually in the amount of $500.00 or
$1,000.00.
PURCHASE AND SALE AGREEMENT
Once the offer has been accepted by the
Seller, the parties will then be required to
execute a formal document called a Purchase and
Sale Agreement. This agreement contains the
details of the transaction. A buyer must be very
careful when signing this document because of all
of the legal pitfalls. Also, the Buyer will be
asked to make another sizeable deposit of between
5% and 10% of the purchase price. The Buyer should
beware of the amount of the deposit because if the
Buyer wants to walk away from the deal for any
reason, the Buyer risks losing that deposit (if
not more) as liquidated damages.
THE MORTGAGE
The next step in the process is securing a
mortgage. There are many different lenders with
many different programs to assist a Buyer in
obtaining financing. The Buyer's loan officer will
be able to assist him or her with that.
CLOSING
The next step is closing. This is a meeting
where the parties come together and sign all the
necessary documents to facilitate the transaction.
The seller will tender a deed and keys, and the
buyer will sign all the mortgage documents and pay
over the purchase price to the seller.
As the Buyer, you will be asked to sign a
myriad of documents. One must be very careful of
what they are signing. The Broker or bank's
attorney may say that "Well, unless you sign, the
bank will not lend you the money." Don't believe
it. Many times a bank will attempt to slip a
document past the Buyer or even charge you for
something the bank agreed to pay. It is always a
good idea to have an attorney with you from the
very first step of the buying process. Also,
beware of real estate brokers who refer Buyers to
an attorney. Remember, the broker will not refer
attorneys clients to the attorney if the
attorney's advice to the client is contrary to the
interests of the Seller or broker. The best thing
to do is retain independent counsel of your own
choice.
Most times the purchase and or sale of real
estate goes smoothly. However, there are times
that is not the case. A buyer or seller should
always have competent legal representation
throughout this tedious process. Remember,
"there's never a problem until there's a problem."
While the information presented in this fact
sheet is accurate as of the date of publication,
it should not be cited or relied upon as legal
authority. It should not be used as a substitute
for reference to Massachusetts and Federal law,
both of which may be reviewed at local law
libraries. Finally, this fact sheet should
supplement, not be a substitute for, advice of
competent legal counsel.
To contact our Boston Real Estate Lawyers, call today at 800-975-5346 or email us.
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