Guide to buying property in America
A person interested in making the purchase of any kind of
real estate in the United States needs to give serious consideration to engaging
the assistance of a qualified and licensed broker. Alternatively of an equally qualified
real estate service that has been established to service the needs of those people
looking at buying property in America.
When looking at buying a property in America, a buyer needs to keep in mind
that the agent or Realtor works for the seller. The real estate agent or Realtor
is legally obliged to protect and further the interests of the seller.
In addition to engaging the assistance of a qualified broker or real estate service,
it is also important to note that the real estate markets found across the United
States vary significantly from location to location. As a consequence, a person
following a guide to buying property in America
will want to make very certain that he or she has resources that are specifically
knowledgeable about the real estate market in a particular region of the U.S.
When reading this or any other guide to buying
property in America you may want to consider obtaining a
financing commitment from a bona fide lender before beginning the search for specific
pieces of real estate. In recent years, in the United States, lenders will extend
mortgage facilities to people interested in purchasing real estate (provided that
they are credit-worthy) in advance of identifying a particular piece of property
By having such a lending commitment in hand, anyone looking at a future guide to buying property in America
will be in a better position to more efficiently and effectively procure real property
in the least amount of time.
When making the purchase of real estate in the United States, the general practice
and law in most states is that a purchaser accepts the property in the actual condition
it is in at the time of the contract for sale is executed. In other words, a buyer
generally buys the property in the condition it is in and cannot complain about
significant defects after the deal is closed between the buyer and seller.
(The one caveat is if the seller willfully and intentionally withholds material
information about defects or problems of a significant nature associated with the
real estate.) As a result, it is imperative that a buyer makes certain that the
property is closely examined for flaws and defects before a contract for sale is
finalized and certainly before the closing date on the transaction.
Once a particular piece of property has been identified for purchase, a contract
is then drafted. In the United States, real estate cannot be sold in the absence
of a written contract. Often, when residential real estate is sold, a standard form
of contract is utilized to memorialize and effect the sale. However, if a person
is making the purchase of investment or commercial real estate, more often than
not a specific and individualized contract is created for the transaction.
When the contract is signed by the parties, a closing date is established. In the
U.S., the closing date is the date on which all of the duties and obligations under
the contract need to be satisfied -- including the obligation of the seller to make
certain that the title to the real estate is "clean" and including the obligation
of the buyer to make certain that his or her financing is in order.
Generally, a closing date is set approximately 30 days from the signing of the contract
for sale. However, there is no hard and fast rule pertaining to when the closing
is to be held. The closing date is established between the parties to the real estate
One of the items that a buyer will want to make certain he or she obtains after
the contract is signed and before the closing date is title insurance. Title insurance
will protect the buyer of real estate should a situation arise in which the title
to the underlying real estate ends up being clouded. A clouded title is one in which
another person or entity ends up having an interest in real estate that may not
have been found or properly disclosed during the time period between the signing
of the contact and the closing of the sale itself.
For example, a prior lender may have a lien on the property that for some reason
was not discovered. While such an encumbrance on the property's title should have
been discovered, there are countless examples in which mistakes occur and liens
and other interests in a particular piece of real estate are not discovered. Again,
title insurance protects a buyer of real estate from any expenses or loss that he
or she might experience as a result of a defect in or cloud on the title to real
In most jurisdictions in America (but not all) local units of government assess
property taxes on real estate. Therefore someone reading any guide to buying
property in America, will need to understand that they are likely
to be responsible for paying a pro rata share of taxes that will be due and owing
for the portion of the year of the purchase during which the buyer actually assumes
ownership of the real estate. Often, the taxes will be due to be paid at the time
of closing to avoid any problems between the buyer and seller in the future.
Additionally, insurance on the real estate needs to be in place to benefit the buyer
on the closing date. A purchaser of developed real estate will not want to assume
possession of the property without making absolutely certain that proper insurance
is in place.
Property Abroad always recommends using a
Solicitor or Lawyer when considering buying property in America or anywhere else.
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