When it comes to buying and selling real estate, bringing in an attorney to represent you is not a must. The transaction can be done exclusively between you and the other party, but complications that could lead to several court cases might come up later. Eventually, you would end up spending more than the fee for hiring an attorney at the outset.
A Case of Short Sale
A common situation faced by the average real estate buyer is having transactions with a seller ready to part ways with a property for an amount below that owed on mortgage. This is what “short sale” is all about. The property’s market value must have diminished leaving the seller with no other option but to let it go for an amount “short” of the former actual price so as to offset a loan. Sellers in this situation are often financially distressed homeowners. Bringing in a real estate law firm to take care of the whole process is perhaps one of the safest options for both buyer and seller.
Qualifications for Short Sale
A short sale exist if the property’s market value have dropped, mortgage is close to or already in default, the vendor (seller) is experiencing financial hardship, or the vendor lacks other assets that could help offset the loan in full. Should the vendor have other assets that could cover the total balance of the loan, lenders are likely to pressurize the vendor into liquidating these other asset so as to payoff. Some states are against such thus making the need for real estate law a brilliant step to take.
Securing Lender’s Approval for Short Sale
Your attorney can also help secure approval of the sale from your lender. The whole essence of this is to negotiate the most suitable protection for the vendor. Without well documented lender’s approval, the vendor may face future unpleasant actions from the bank.
Short Sale Involving More Than One Heir
There is also the possibility that property bought has more than one heir unknown to the buyer. In the first place, who actually hold the right to sell the property? What if other heirs are not disposed to selling? Even if they are, there is need for proper legal documentation to avoid future complications. A real estate law firm is no option in such situations.
When Commercial Entities Are Involved
You may likely find yourself in a real estate transaction with one or more commercial entities such as a limited liability company, corporation or partnership. The business entities will have to fill some specific documents. The entities by-laws and charters have a part to play. These are things best handle by attorneys.
Whether you are the buyer or seller in a real estate transaction, you will save yourself a whole lot of future regrets by employing the service of real estate and land law attorneys in Palm Springs. For immediate consultation with a real estate law firm, contact us.