The Top 5 Legal Traps In Real Estate Deals — And How To Avoid Them
When buying or selling a house, you should be aware of the potential legal traps that can crop up in a real estate deal — and when you may need a Real Estate Lawyer. If you’re not careful, these traps can cost you time and money.
In this guide, we will discuss the top five legal traps in real estate deals and how to avoid them with the help of a real estate lawyer.
Failing to perform due diligence on the property properly
When you’re looking at purchasing a property, you must do your due diligence. This means that you need to research the property thoroughly before making an offer. You should look at factors like the zoning regulations, any outstanding liens or mortgages on the property, and anything else that could affect your property ownership.
You could be held liable if you fail to do your due diligence and something goes wrong with the property. For example, if there are outstanding liens on the property that you weren’t aware of, you could be responsible for paying them off. Or, if the property is zoned for commercial use and you try to turn it into a residential property, you could be fined or even forced to tear down any improvements you’ve made.
Bottom line: don’t skip out on due diligence when purchasing a property. It’s not worth the risk! Spend the time upfront to ensure you know what you’re getting yourself into.
Entering into a contract without fully understanding all of the terms
In real estate deals, it is not uncommon for one party to try to take advantage of the other by hiding specific terms in the contract. This can be a legal trap if the other party does not take the time to understand all of the terms before signing.
The hidden terms may not be discovered until after the deal has been completed, at which point it may be too late to do anything about them. It is crucial to ensure you understand everything you agree to before signing any contract. Otherwise, you could end up in a very bad situation.
If you have any questions about the contract, consult your real estate agent or a real estate lawyer before signing.
Not having a solid contract in place
The contract is one of the most important aspects of any real estate deal. This document outlines the terms of the transaction and protects both the buyer and seller from potential problems down the road. Without an agreement, either party could back out of the deal at any time for any reason.
Assuming all title company procedures are followed
Assuming all title company procedures are followed is a legal trap in real estate deals. This is because many title companies are not following the proper procedures.
If you assume that all title company procedures are being followed, and they’re not, you could be in for a nasty surprise. It’s always best to err on the side of caution and check with your real estate lawyer or closing agent to ensure everything is being done correctly.
Not getting independent legal advice
Not getting independent legal advice can be a legal trap in real estate deals if you’re not careful. Having a lawyer to protect your interests and ensure the deal is structured correctly is essential. Without independent legal advice, you could be signing away your rights without even realizing it. So if you’re considering buying or selling property, get some good legal advice from a real estate lawyer first.
When buying or selling a home, you need to be aware of how scammers can try to take advantage of you. From offering too good to be true deals to convincing you to sign paperwork before you’ve had a chance to review it, scammers will use any tactic to steal your money.
When you’re ready to buy a property, whether it’s your first home or an investment real estate, be sure to do your due diligence and avoid getting scammed. From a real estate lawyer’s expertise, here are five simple steps to help protect yourself from being scammed in a real estate deal. Keep reading to learn more!
Get a real estate lawyer
A good real estate lawyer will look out for your best interests and ensure the deal is fair. They can also spot any red flags that may indicate you’re being scammed.
Get a home inspection.
This is important even if you’re buying a brand new property. A home inspector will look for any structural problems or hidden damage that could cost you thousands of dollars down the road.
Research the neighborhood
You don’t want to buy a property in a neighborhood that’s declining in value. Look at crime statistics, average home prices, and the quality of schools in the area before you make an offer on a property.
Be wary of deals that seem too good to be true
If someone is offering to sell you a property far below market value, there’s probably a reason why. Be sure to have your real estate lawyer look over any such deal before committing to anything.
Don’t let anyone pressure you into making a decision
If you’re not ready to buy, simply walk away from the deal. There are plenty of other properties, and you don’t want to rush into something only to find out later that you’ve been scammed.
Common real estate scams
When it comes to real estate, there are a lot of ways that people can get scammed. This is why it’s so important to have a real estate lawyer on your side who can help you avoid these scams.
Here are some of the most common real estate scams and how a lawyer can help you avoid them:
- The bait and switch: This is when a seller offers one property for sale at a low price but then tries to switch the buyer to a different, more expensive property. A real estate lawyer will be able to spot this scam and protect you from it.
- The fake rental listing: This is when someone lists a property for rent on an online site like Craigslist, but the property doesn’t exist. A real estate lawyer can help you verify that a rental listing is real before you send any money to the landlord.
- The foreclosure rescue scam: This is when a scammer offers to “rescue” a homeowner who is facing foreclosure. The scammer will ask for a fee upfront, but then they will disappear, and the homeowner will still lose their home. A real estate lawyer can help you avoid this type of scam by ensuring you understand your rights and options if you’re facing foreclosure.
Protect yourself from fraud and get the most out of your real estate deal.
Real estate fraud can happen to anyone, so it’s important to be aware of the signs and protect yourself. The best way to do this is by working with a qualified real estate lawyer who can help you through the process.
At Malley Law Firm, we have decades of experience helping people buy and sell properties. We know what to look for in a fraudulent deal, and we’ll work tirelessly to ensure your interests are protected.
If you’re considering buying or selling property, contact us today for a consultation – we would be happy to help you get started on the right foot.