The decision to purchase a new home may involve the greatest financial investment of your life. The purchase of a new home in Rhode Island may bring you contentment and peace of mind, but only if you carefully consider the complex legal requirements required during the home-buying process.
Escrow
The buyer and seller typically open escrow after they formalize a purchase agreement for the home. An escrow handles all financial aspects involved in buying the home. Title insurance companies and escrow companies both provide escrow services. These services typically include:
- Keeping the payment safe until the parties close
- Transferring payments to the seller
- Providing the buyer with the deed of title
- Protect the lender
Avoiding vague terminology
Vague or confusing terminology makes up one of the biggest concerns with real estate contracts. All contracts must clearly identify the parties involved, the property, and the exact price. If contracts fail to include these terms explicitly, you may face legal difficulties if a dispute occurs during the buying process.
Disputes about property
When you purchase a home, the seller should make you aware of any previous disputes about the property. Often, these disputes may occur with a neighbor who challenges the correct boundaries of the property. The country recorder should contain public records that clearly establish the correct boundary lines. Failure to establish boundary lines could lead to legal difficulties with neighbors.
The purchase agreement
If the seller accepts your offer, you will enter into a purchase agreement. This refers to the contract that you and the seller sign detailing important aspects of the purchase, such as:
- Date of closing
- Deposit required
- Contingency plans in case the sale does not go through
- Date you may move into your new home
Protecting both parties
Real estate law’s complexities protect both the buyer and the seller. While the legal considerations may seem frustrating, they may benefit you in the long term.