Legal Considerations

The Nature of Legal Disputes

• Anyone Can Sue for Anything: It's essential to understand that anyone can file a lawsuit, regardless of the merits of the case. This means you should be prepared for potential legal challenges, even if you believe your position is strong.

• Contracts Open to Interpretation: Real estate contracts, like any legal document, can be subject to interpretation. Even seemingly clear terms can be contested in court. Ensure you fully understand the contract's terms and seek legal advice if needed.

Using Standard Contracts vs. Custom Contracts

• Standard State or Local Forms: If you are buying a home from a seller represented by a realtor, they will likely prefer using standard state or local forms. These are familiar to both parties and less likely to be rejected.

• Custom Attorney-Provided Contracts: While having a contract drafted by your attorney can provide tailored protections, it might make the listing agent and seller uncomfortable. They may advise against accepting a non-standard contract, which could hinder your offer. Before investing in a custom contract, check if the seller and their agent are open to it.

Comprehensive and Clear Contract Language

• Detailed Terms: When adding additional terms to your contract, use comprehensive and precise language. Vague or ambiguous terms can lead to disputes and misunderstandings.

• Avoiding Illegal Real Estate Practice: Remember, you can represent yourself but not others (e.g., friends, family members) unless you are a licensed real estate agent and a party to the transaction. Practicing real estate without a license is illegal.

Buyer Beware: Caveat Emptor

• State Laws: Many states operate under the principle of "caveat emptor" or "buyer beware." This means it’s your responsibility to inspect the property and uncover any issues before purchase.

• Post-Closing Discoveries: Once you close on the home, any problems become your responsibility. Unless you can prove deliberate deception by the seller, seeking recourse can be challenging. Understand that owning a home involves unexpected issues and maintenance.

Importance of Documentation

• Written Records: Always get everything in writing, preferably via email. Emails provide a verifiable record of communications, which can be crucial in resolving disputes.

• Follow-Up on Conversations: After any phone call, follow up with an email summarizing the discussion and request confirmation. This practice helps ensure both parties agree on what was discussed.

• Admissibility in Court: Emails are generally more likely to be admissible in court compared to text messages. Stick to email communications for all significant interactions.

Thorough Home Inspections

• Inspection Contingencies: Include a thorough inspection contingency in your offer. This allows you to back out or renegotiate if significant issues are found.

• Professional Inspectors: Hire a qualified, experienced home inspector. They can uncover hidden problems that might not be apparent during a regular viewing.

• Disclosure Issues: Sellers are required to disclose known issues, but some problems might not be revealed. Ensure you do your due diligence.

Finalizing the Deal

• Reviewing the Contract: Before signing, review all contract terms carefully. Consider having a real estate attorney review the contract to ensure your interests are protected.

• Closing Day: Be prepared for closing day by understanding all documents you need to sign and the costs involved. This is your last chance to address any issues before the property becomes yours.