Legal Matters Concerning the Sale of Real Estate

There are a myriad of legal issues concerning the sale of real estate. Having all your bases covered at each step is wise. Consult your realtor and/or lawyer in order to be certain all legal matters are covered properly. The advice here is very general and should not be relied upon as your only source of information.

The Real Estate Agents Listing Agreement

If you are selling through a realtor, you will be signing a listing agreement. This sets the terms for the payment of commissions upon the sale of the property. These commissions are typically a percentage of the sale price. The listing agreement will also state the length of time the agreement is to last for. The commission rate and time frames are negotiable.

Be aware that most listing agreements are "exclusive". This means that the realtor you have hired is the exclusive agent and sales commissions are due to them regardless of who sells the property. If you happen to find a buyer on our own, perhaps a friend or relative, the listing agent is still entitled to a commission as per the legal contract of the listing agreement.

Purchase Offers

When a buyer makes an offer on your property it will come as a written document. A "Purchase and Sale Contract" will state the price the buyer is offering along with various contingencies. Should you accept the offer you must sign the contract. Once signed it becomes a legally binding agreement.

For more on offers read Taking Offers on Real Estate

Transfer Disclosure Statement

Sellers are required to disclose all known problems, or deficiencies with the property, or anything that may negatively effect the value of the real estate being sold. This could also include issues outside the boundaries of the property in question. Such as facts about the neighborhood.

The seller is not liable for any issues they were not aware of before the date of sale.

Transfer of Title or Deed

The sale is complete once the title of ownership is transferred to the buyer. A lawyer or notary will conduct a conveyance to transfer the title. Once payment of funds have been confirmed, a new deed will be drafted. Signatures must be notarized and then the title is handed to the buyer.

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