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Thread: Important WHEN BUYING REAL ESTATE

  1. #1
    Ent
    Registered User Ent is offline
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    Exclamation Important WHEN BUYING REAL ESTATE

    All who have bought property and have problems tell us what new buyers should look out for so they donít get into big trouble.

    I will start with LIENS!


    Have your lawyer check for what the property owes.

    Everyone automaticly think of the mortgage, But that is just the begining.

    There are hidden cost you would have to bare that some lawyers dont even check for.

    Example: is there an unpaid utility bill that is accumulating interest and penalties?

    Was a repair job done on the building that was not full paid resultin in a lien placed against the propert which is also ammassing interest and penalties?

    Have all real este taxes been paid?


    So be sure to check for Liens.

    .

  2. #2
    where de crix Oneshot's Avatar Oneshot is offline
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    please explain, wouldnt liabilities of that sort beheld against the signatory of the bill or does it default against the property and the current deed holder?

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    Banned Ms. QT CuTe's Avatar Ms. QT CuTe is offline
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    Quote Originally Posted by Ent View Post
    All who have bought property and have problems tell us what new buyers should look out for so they donít get into big trouble.

    I will start with LIENS!


    Have your lawyer check for what the property owes.

    Everyone automaticly think of the mortgage, But that is just the begining.

    There are hidden cost you would have to bare that some lawyers dont even check for.

    Example: is there an unpaid utility bill that is accumulating interest and penalties?

    Was a repair job done on the building that was not full paid resultin in a lien placed against the propert which is also ammassing interest and penalties?

    Have all real este taxes been paid?


    So be sure to check for Liens.

    .
    make sure that u dont pay over what the property is worth/appraised for.

    i did. it was only a difference of 5k but at the closing i was informed that i would be stuck with paying PMI insurance along with my mortgage.

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    Registered User dedetriniking's Avatar dedetriniking is offline
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    Explain to people that good faith estimate and the importance of insisting on a listing of all charges closing charges including the effect of points on your mortgage.

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    Banned Ms. QT CuTe's Avatar Ms. QT CuTe is offline
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    also, make sure you get an engineer to inspect the home PRIOR to going into contract. only use one that guarantees their work.

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    Mr. BALTIMORE Redlocks's Avatar Redlocks is offline
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    First, remember that real estate is the most local of any business. Advice from your friend in Connecticut doesn't always apply to your purchase in Maryland.

    When you negotiate the transaction include a home inspection contingency which allows you to make certain repairs a condition of the sale if defects are
    identified.

    Do not rely upon internet based lenders. The cost of funds is roughly the same for all lenders so those offering lower rates will often stick you with higher fees. If you are in the US insist that the lender provide not only a good
    faith estimate but the APR along with an explanation of how the APR was
    determined.

    Be sure to purchase an owners title insurance policy. Your mortgage company
    will require you to purchase coverage which protects them as a condition of the loan. If any title issues arise while you own the property the title company is required to defend all claims if your purchase an owners policy.

    When visiting a property where the listing agent or the seller is present,
    even if you love the house act unimpressed. Buyers who telegraph their
    emotions end up giving away their negotiating position.
    Think For Yourself

  7. #7
    Ball-in-Hand Hotgirl11226's Avatar Hotgirl11226 is offline
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    I don't own any real property...but here are some tips that I have learned from my Property Law class:

    - Make sure the lot is surveyed! Do not sign anything without that survey. The survey takes account of the actual land, sizes it up and tells you what part of the land you are actually buying.

    If you are buying property with a drive way or back yard for instance, and your neighbor has a gate which encroaches on your property (this will be shown on the survey)...It is important to know this before hand because of several reasons.. One being the adverse possession laws in NY. After 10 years i believe, if the encroachment is there (out in the open), no one said anything about it, that neighbor has now adversely possessed that portion of your property and it now belongs to him/her! (there are some more caveats, but that is the gist of adverse possession).

    Another reason you should get a survey is to make sure that the property is built on the proper lot which is on file with the clerks office. If your house is built on lot A for example, but on the plan filed with the clerk it says that the house should be on lot B, that's a huge problem. You also want to make sure there are no claims to quiet title.


    - For houses with finished basements, you want to make sure that the seller did it legally and actually has a permit. If the seller created a finished basement to a legal 2 family without a permit, the house cannot be sold as a 3 family. You also want to compare the house to the floor plan. You want to make sure that if the owner made any structural changes to the house, that 1) he/she had a permit; 2) the structure is safe and not in any violations...ie sometimes people add extra bathrooms or patios to their house in violation of structural codes. As the new owner, you will become liable for that stuff even if it was there when you bought the house.

    - Investigate all liens.

    - Investigate any major repairs that have been done. If the boiler was replaced, septic tank repaired, roofing, etc.

    - Be careful about buying a house that already has tenants. Might sound like a good idea, but could turn out to be a big headache.

    - Make sure the seller has good title. VERY IMPORTANT because you cannot transfer bad title. It sounds elementary, but you'd be surprised. So the bottom line is that if the current owner didn't have good title when the sale was made, the rightful title holder will have a claim against your house.

    - this is mostly for condo/co-op purchases...make sure to look into restrictions in the bylaws. Co-op boards can almost create any rule they want as long as it doesn't break the law. So if they say something like, no more than 2 people can ever live in this apartment....that's something you want to know before you purchase. Silly example, but my point is that a co-op is a corporation and state law generally does not get involved in the internal affairs of corporations (that's the American way)...so be sure to read their by-laws.

    In a perfect world, your lawyer would just naturally do all these things and all would be well :).......but in life you get what you pay for. A $50/hr lawyer will probably be less motivated than a $500/hr lawyer.
    Last edited by Hotgirl11226; 09-03-2009 at 12:16 PM.

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    Ball-in-Hand Hotgirl11226's Avatar Hotgirl11226 is offline
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    Quote Originally Posted by Redlocks View Post
    First, remember that real estate is the most local of any business. Advice from your friend in Connecticut doesn't always apply to your purchase in Maryland.

    When you negotiate the transaction include a home inspection contingency which allows you to make certain repairs a condition of the sale if defects are
    identified.

    Do not rely upon internet based lenders. The cost of funds is roughly the same for all lenders so those offering lower rates will often stick you with higher fees. If you are in the US insist that the lender provide not only a good
    faith estimate but the APR along with an explanation of how the APR was
    determined.

    Be sure to purchase an owners title insurance policy. Your mortgage company
    will require you to purchase coverage which protects them as a condition of the loan. If any title issues arise while you own the property the title company is required to defend all claims if your purchase an owners policy.

    When visiting a property where the listing agent or the seller is present,
    even if you love the house act unimpressed. Buyers who telegraph their
    emotions end up giving away their negotiating position
    .
    absolutely

  9. #9
    where de crix Oneshot's Avatar Oneshot is offline
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    Foreclosure Tidal Wave | The Big Picture

    the next foreclosure tidal wave

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    Registered User ohyvey55 is offline
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    Thumbs up

    Man yeah foreclosures are a bi-at-itch! But even more so I'd warn first time home owners about taking out home equity loans... gah, can get you into serious trouble if it all goes wrong! There's a good article about the dangers of it on http://www.homeequityloan.net if anyone's still looking for info. Hope that helps!

  11. #11
    Registered User Mr. Spontaneity is offline
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    I only have a one word for this thread- Solicitor, a great solicitor after a interest has arisen for a property wether land or house is KEY to any purchase, seeing as they should be verse in conveyancing firstly and all other formalities are what they went to law and done the LPC course for. Spend the money and hire a Solicitor *shameless plug*

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