4 Common Legal Problems When Selling Your House

If you have a piece of real estate for sale, you cannot be short of buyers. This is true about real estate during a property boom. It is also true of real estate during a recession. The truth is that one of the best things anybody can do is to invest in property. In this context, property can mean land, houses, shopping malls, a farmland or a warehouse. In most cases, property prices appreciate and this is why this form of investment is a great idea. People who invest in property are likely to make money from the investment and because of this; you shouldn’t be short of buyers if you have a house for sale.

The simplest way to sell your house is to place a sign in front of the house with the words; “For Sale” boldly written on the sign. Interested buyers see the sign, contact you, and the deal is finalized. You pick up the cash, the buyer gets the house and everybody is happy. Unfortunately, selling a house is not the same thing as selling groceries in a street corner shop. A house comes with a lot of paper work and there are times the homeowner will encounter legal problems in his or her attempt to sell the house. This is why it pays to talk to a real estate lawyer before selling a house.

The great thing about getting a lawyer involved in the process is that the lawyer will give excellent and objective advice. There are times a homeowner may break a real estate law without being aware that he or she is doing so. With a lawyer in the picture, this is not likely to happen. It is important to point out that if you are selling a house, you need to be very honest with the buyer. If you withhold vital information from the buyer, this may be grounds for prosecution.

Joint Ownership

One of the most common problems with selling your home is joint ownership of property. In some American states, community property is recognized between married couples. In the event that one of the partners dies and the surviving partner wants to sell the house, the right real estate law must be followed. If the couple made an estate plan, the terms of that estate plan must be followed in selling the house. In cases where there is no estate plan, the laws of the state will apply.

Monetary Claims

Another problem with selling your home may be monetary claims against a property. The purpose of these claims may be to secure an obligation to a debt owed by the property owner. These claims are called liens and they include mortgages, court judgments and liens for unpaid taxes. The point is that you cannot sell a house without disclosing all the liens to the potential buyer of the property.

Title Issues

Another problem with selling a house can be title problems or a clouded title. In simple English, this means there are unresolved disputes over the ownership of the house. For instance, you have inherited a house from your parents but there are missing heirs with possible claims on the property. This means that the title is not as clean as it should be. You may need to discuss this situation with a lawyer and get things ironed out before selling the house.

Boundary Disputes

Finally, there may be boundary or survey disputes with regulatory bodies or government agencies. There may even be liens for work done on the property. All these are problems and they need to be disclosed before the house is sold. Now, there are property investors who will like to buy houses with title problems at a discount. Their aim is to correct the title problems, sell the house and make profit. For this reason, it makes a lot of sense for the person selling the house to handle the transaction in good faith and tell the prospective buyer the truth. Also a person who owns property or hopes to own property in the future should be knowledgeable in the field or real estate, whether that is through attaining a degree in the field or hiring trustworthy lawyer to help.

 

 

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