Indeed, navigating real estate transactions in California can involve complex legal considerations. While a trusted real estate broker can assist you in negotiating deals, it's essential to recognize that brokers are not lawyers. Real estate attorneys, on the other hand, play a crucial role in offering the right legal advice and representation tailored to your specific case, ensuring a comprehensive understanding and resolution of potential legal issues.
Although many transactions are completed using standard form agreements that can be modified, some circumstances may require more dedication and care. In more complex situations, some prefer to have their attorney draft custom contracts to facilitate the transaction.
Advice from real estate agents and brokers is beneficial for navigating the real estate buying and selling process. Still, the advice and representation of a real estate attorney is necessary to cover all of your bases so that you are not left in a situation that harms your future.
Entering into any real estate transaction can seem like a daunting task. There are often many facets to consider. There is a real estate agent for the buyer and another for the seller. Each party may also have a real estate attorney working in tandem with their respective agents.
The process itself can go smoothly as long as you have the right team with you. Our firm will thoroughly review everything with you to get you the desired results. From the onset of the real estate transaction, we will keep your best interests in mind as we navigate and negotiate on your behalf.
The best illustration of what we can do for you is to explain from a potential buyer's perspective.
Typically, as a buyer interested in real estate, you would make an offer to the owner. If the owner accepts the offer, you and the seller will enter the agreement into escrow. As the buyer, you have a fixed amount of time to perform due diligence to determine the condition of the real property.
During this period, you obtain financing for the transaction if you haven't done so already. If the buyer is satisfied with the due diligence results and secures funding, the parties prepare to close the transaction.
As your real estate transaction firm, we are most interested in these three major components of your real estate deal: financing, disclosures, and due diligence.
The financing component is extremely important as we must ensure the playing field is level on your behalf. Have you secured financing that is acceptable to the seller? If the financing you've obtained seems risky to the seller, they can opt out of a transaction. We review what this means and how it can impact your overall transaction.
Understanding disclosures, or information about the property, plays a crucial role in deciding whether to continue with a real estate transaction or not. The seller has an affirmative duty to disclose information that materially affects the desirability of the property being sold. Including terms such as "as is" in a contract does not shield a seller from potential liability.
Many sellers do not fully understand their disclosure obligations, leading to lawsuits based on failure to disclose or inadequate disclosures. As your real estate transaction law firm, we can assess some commonly missed disclosures and make sure that the seller is being forthcoming.
Some common disclosure items we look for include:
While the seller does have a duty to disclose, as the buyer, you must always perform your own independent due diligence to check the physical and legal condition of the real property. This allows you to discover any defects the seller did not disclose and determine the cost of remedying both disclosed and undisclosed defects.
Typically, a longer due diligence period favors the buyer and allows you to discover more about the real property. If a buyer discovers previously undisclosed material defects, they must let the seller know and either renegotiate the purchase price or back out of the purchase.
The buyer's right to back out due to defects in the property during the due diligence period is often unconditional and without any penalty.
Financing, disclosures, and due diligence are all extremely important in the real estate transaction process, but there are a few more steps to completion.
Closing out the real estate transaction process, the escrow company receives and confirms that all necessary documents have been signed. Next, the purchase price payment is verified, and the escrow company pays all liens and encumbrances on the property.
The escrow company then disburses the net proceeds to the seller while at the same time recording the title in the name of the buyer.
Other aspects tie into many real estate transactions that our firm has years of experience working with.
Other related real estate transactions may include working with:
If you are looking to buy or sell property in the greater Beverly Hills area, an experienced attorney from our firm can help ensure that your transaction proceeds smoothly.
Whether the parties use a form or a custom purchase agreement, there are various issues to consider when entering into real estate agreements. Our team will apply the law in a practical manner to resolve problems related to all phases of a real estate transaction.