Advice to Home Buyers
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The purchase of a home is one of the most important financial transactions a family may make. It involves numerous legal rights and obligations and typically involves the largest and longest term financial commitment a person may make. Because of the importance of the transaction, home buyers should seek the advice and counsel of an experienced real estate attorney BEFORE signing a contract or offer. The typical real estate contract used by real estate agents in Texas is a form promulgated by the Texas Real Estate Commission. While the form is generally balanced between the interests of the seller and buyer, there are important features of the contract that the buyer must understand. Two of the most important matters for the buyer are:
Title Insurance In Texas, urban residential real property is usually sold with a title insurance policy being provided by the seller at the seller’s cost. This title insurance provides the assurance to the buyer that when the buyer pays the purchase price the buyer will actually own the property. Prior to closing, however, the title insurance company usually issues a title commitment upon which are listed any outstanding title defects. The standard real estate contract requires the buyer to make objections to any of the defects in order to require the seller to cure the defects before a title policy issues. Oftentimes the lender will review the title policy commitment, but the buyer really should review it himself. This is where the advice of counsel becomes critical. If title defects are not objected to, then the buyer receives the title subject to those defects. This is not good. Survey Most of the time a seller will have a copy of a survey of the property. This will show the properly lines, location of the residence within the property lines, and any easements or encroachments that may cross the property. A smart buyer will insist upon seeing a copy of the seller’s survey, or get a new survey, to be sure there are no adverse conditions relating to the property. Inspection With regard to the condition of the property, a Texas seller of real property must furnish the buyer with a special notice making representations concerning the condition of the house and all of its equipment and elements. Sellers sometimes lie. A buyer should protect himself against sellers lying by hiring a reputable inspector to inspect the house and all of the equipment. This is money well spent and will prevent buyer’s remorse. My conclusion is that the buyer should be wary and secure the assistance of a real estate attorney before signing a contract. Then after signing the contract, the owner should engage a house inspector to inspect the property. Buyers Beware and Be Wary. |
