Everyone dreams of having their own home and some property which belongs to them. One meticulously saves to own that ranch or buy that penthouse. Real Estate is a huge decision for one and is the largest transaction that buyers and sellers will make. It involves crucial areas of law that do not operate elsewhere. Most deals can be finalized without an attorney as people don’t usually hire one. However, since it is a crucial decision for one, it may be a good idea to employ the services of a real estate law firm for a property transaction even though it might escalate the cost as some situations may require them.
When the sale of real estate is made for less than the amount owed on mortgage, it is a short sale. The seller comes up “short” on the money to pay off the loan. The services of a real estate law firm can be valuable for financially distressed homeowners in such a situation.
A short sale is qualified by these four reasons typically: a drop in the market value, defaulted or close to default mortgage, vendor suffering from a financial hardship, seller may not have other assets that could be used to pay off the full balance of the loan. The lender may ask the vendor to liquidate the assets if the seller has any to help in paying off the loan. However, some things may not be considered assets and some states have a protection policy for vendors. Legal advice obtained form a real estate law firm can be valuable in such a situation; it will fully evaluate the vendor’s position, protect the seller’s assets and determine if the vendor qualifies.
Lender Approval of the Sale
Attorneys help negotiate the most protection for the vendor and also secure the lender’s approval. It is important to ensure that the vendor is adequately protected from the mortgage in the future; otherwise the bank may be able to obtain a deficiency judgement. The bank can get hold of the seller in some way or the other for the amount that was shorted if a deficiency judgement is passed. The bank may favour the dealer and pull money from the vendor’s bank account. In this case, a seller can lose his property as well as protection from the bank in the future.
Many questions arise when an inherited property is to be bought or sold. Sometimes, the property may be inherited by more than one person. The first question for both buyers and sellers is then who can sell the property. A thorough title search is often required to answer this question. There may be other questions as well. What if one or more of the heirs is not interested in selling? Can the property be sold after partitioning? Can the non-compliant heirs “buy out” the heirs that wish to sell? These situations can escalate with many complications and a real-estate law firm can ensure that all legal requirements are met and the rights of all those involved are protected.
Often the matters of real estate are concerned with business entities like partnerships, corporation or a limited liability company. If they want to purchase or sell an immovable, many formalities and fillings have to be completed as well as some additional requirements. Specific documents must be filed to protect interests. Also, the charters and by-laws of the entities must be followed. Attorneys can be of great help as they understand the nature and structure of business entities and will be able to protect and ensure that the charters and by-laws are adhered to.
Rutman and Rutman Professional Corporation provides personalized service to its clients, by focusing on their individual needs as well as their distinct business identities. They practise n the areas of real estate, family law, estate planning and employment law among others.