Closing on your first home is an exciting and monumental experience. For first-time buyers, it can be difficult to understand the process in its entirety and to recognize specific issues that may arise throughout the process.
In many cases, issues that require legal assistance or guidance to resolve may arise. In order to avoid legal issues post-closing, it is best to ask questions prior to closing on your home.
What to Ask Before Your Closing
The following are a few key questions to ask before you close the deal on your first home.
#1 Will the Seller Cover Any Fees?
In the current real estate market, it is vitally important to determine who covers inspection costs, cash-to-close fees, closing costs, and more throughout the buying and selling process. The buyer and seller can negotiate these items, but it is important to have these details determined prior to closing on your home.
Some sellers may decline to cover any costs throughout the process, which is important for the buyer to know beforehand. If you are unsure of the payment details, consult your real estate attorney. They will assist you in reading through contracts so you are fully prepared to cover all necessary costs.
#2 What are the Homeowners Association Restrictions?
Many homes are part of a homeowner’s association (HOA). These types of associations are legal entities ran by local community members and companies.
In addition to paying monthly fees, HOAs often have certain rules and restrictions for the homeowner. These rules typically encompass the following:
- Landscaping
- Rentals
- Vehicles
- Pets
- Trash
- Exterior of the home
When joining an HOA, you make a legal agreement to abide by their rules and regulations. Failure to do so may result in fines, or even enforcement of rules through court intervention.
If you are unsure what policies you must agree to for your HOA, contact a local real estate attorney to assist you in deciphering your particular HOA regulations.
#3 Is there a Lien on My Home/Property?
A lien is a legal claim to a property or home by a creditor. Liens create certain restrictions for your home or property, such as its overall value as an asset, or when you can sell the property in the future. Luckily, certain liens can be removed through payments, resulting in full ownership being turned over to you as the homeowner.
It is important to note that voluntary liens are placed on the home to ensure the mortgage is paid off. Other types of liens, however, are involuntary, such as tax or mechanic liens.
As the homeowner, you need to pay these liens as soon as possible. Failure to pay these liens results in an unpaid debt, and the creditor could seek to enforce its lien. This can result in the creditor foreclosing on your property against your will. Real estate attorneys are knowledgeable regarding property liens and will aid you throughout the process.
Purchasing Your First Home?
Are you in the process of closing on your first home? Have you failed to ask some of the questions throughout the buying process that we have covered here? This is the perfect time to contact us.
At Apfelbaum Law, our attorneys are experienced in real estate law and real estate closings. We understand the process can be confusing and overwhelming at times and are prepared to walk you through all the necessary steps to avoid legal problems in the future. Contact us today for a consultation.
