Buying a home will probably be one of the most important purchases you will ever make. The same is true if you sell it, both situations raise legal issues that only a real estate lawyer, thanks to his resources and experience, can solve.
Although you may think that using a lawyer for this procedure is a superfluous expense, most of the time it is money well spent. It can save you a lot of hassle that could cause you to lose even more than you invested. Read on to find out how a property lawyer can help you close the deal and avoid unpleasant surprises.
Buying/selling a house
When you buy or sell a property through an agency, you sign a contract with the real estate agent, who is the one who conducts the negotiations and acts as an intermediary. Once an agreement has been reached, both the seller and the buyer must sign a contract of sale and purchase. buying and selling. Then the process usually follows the following steps:
- The buyer asks for financing or mortgage
- The seller transfers the property to the buyer and receives the purchase price stipulated in the contract.
It sounds like a straightforward process, but if you don’t have a lawyer to keep an eye on it, the consequences can be disastrous.
Avoid unclear parts and clauses
Going to a law firm can save you a lot of trouble when buying or selling your property. There are cases in which an agreement is signed with the real estate agency that does not meet some important legal issues. This happens because they tend to use standard contracts in the expectation that they will fit all situations.
On the other hand, it may be the case that one of the parties does not finalise the agreement and the agency obliges you to pay a brokerage fee. However, with the help of a real estate lawyer, the seller can claim the right to negotiate on his own behalf and avoid these problems.
Carry out the necessary consultations
It is very likely that during the course of negotiations you will want to consult with a real estate lawyer to help you answer important legal questions.
One example is the tax consequences arising in most cases from a sale where the seller makes a large profit. In this case it is advisable to turn to a law firm where they can advise the seller on how to take advantage of these capital gains in certain circumstances.
Contract of sale
The purchase contract is the most important step in the whole transaction. Standard templates can always be used, but a real estate lawyer is necessary to explain all the clauses and make any necessary changes to reflect all the requirements of both the buyer and the seller.
There are many legal issues that must be included in a contract of sale, for example:
- If the property is free of encumbrances
- Whether the buyer can modify the property prior to sale
- If, after purchase, the property is damaged, e.g. by termites, leaks, insect infestation, etc.
- What are the legal consequences if the sale is not concluded by either party and what happens to the down payment?
- How money is exchanged exchange of money and ownership
- What happens if the buyer finally does not obtain the financing?
There are many occasions where buyers finance a substantial part of the purchase of the property by means of a mortgage loan from a credit institution. The contract must have a detailed clause in which the buyer undertakes to obtain this financing.
Closing the sale
The closing of the sale is the most important part of the purchase agreement. You should prepare the deeds and have the contracts ready with all necessary amendments and other documents.
The title deeds will then pass into the name of the buyer who will pay the remainder of the purchase price, usually by means of a mortgage loan. In this case it is useful to have a lawyer to ensure that the whole process is properly executed and to avoid last minute disputes over things like taxes, for example.
End of the process
Having the advice of a real estate lawyer is necessary because of all the difficulties and complex situations involved in a real estate transaction. Going to an experienced law firm can help protect your interests and make the whole process easier for you. They ensure that the transaction is handled safely and securely and that everyone involved is satisfied.
If you are thinking of buying or selling a property in Ibiza, you can consult us without obligation. At Legal-Boutique we are specialists in real estate law and we will carry out all the necessary actions to help you in your buying and selling process.