Real Estate Transactions

Real estate is the modern term for land and anything that is permanently affixed to it. Fixtures include buildings, fences, and things attached to buildings, such as plumbing, heating, and light fixtures. Property that is not affixed is regarded as personal property. For example, furniture and draperies are items of personal property.

The sale and lease of real estate in the United States are major economic activities and are regulated by state and federal laws. The two major types of real estate transactions are commercial and residential real estate. Commercial real estate involves the sale and lease of property for business purposes. Residential real estate involves the sale and rental of land and houses to individuals and families for daily living.

The sale of residential property is heavily regulated. All states require real estate agents and brokers, who earn a commission from the owner of real estate for selling the property, to be licensed. To get a license, a person must have a high school diploma, be at least eighteen years old, and pass a written test on real estate principles and law.

Since the 1970s, home buyers have been given additional protection under the law. Many states and municipalities require a seller of real estate to file a truth-in-housing statement. A seller must disclose any problems with the home, such as a wet basement or the presence of termites, on the form. Failure to disclose this information can result in the revocation of the purchase agreement or a lawsuit by the buyers against the seller for fraud. In addition, some laws require an inspector to visit the property to determine if there are any problems.

Most purchases of residential real estate require the buyer to obtain a mortgage from a bank or other lending institution. The lending institution receives a security interest on the real estate, which means that if the borrower defaults in paying back the mortgage, the institution can obtain title to the property and resell it to pay off the mortgage debt.

At Leighton Legal Group, LLC, when representing the Seller we will:

• Prepare the Contract for Sale of Real Estate from the Purchase Agreement
• Prepare the Real Estate Disclosure Report (if necessary)
• Coordinate termite inspection
• Order title through Title Company
• Negotiate any problems that occur in the transfer prior to Closing
• Schedule and coordinate the Closing conference (if necessary)
• Prepare the deed transferring the property
• Prepare the Closing settlement sheet
• Prepare the Real Estate Transfer Declaration
• Attend the Closing conference

When representing the Buyer we will:

• Review the Contract for Sale of Real Estate from the Purchase Agreement
• Review the Real Estate Disclosure Report
• Review title and advise our client as necessary
• Negotiate any problems that occur in the transfer prior to Closing
• Review the deed transferring the property
• Review the Closing settlement sheet
• Review the Real Estate Transfer Declaration
• Review the HUD-1 statement
• Attend the Closing conference