Real Estate Attorneys Serving Southeast Wisconsin

Once an offer has been accepted, the parties are bound by the contract to proceed to closing, unless special contingencies are triggered. For example, such contingencies may allow the parties to back out of the deal if the buyer cannot secure financing, or if a home inspection report finds structural disrepair problems with the house. An attorney can help draft a Purchase Agreement with built-in protections and safeguards to ensure that you have an exit from the contract if unforeseen issues with the property arise before closing.

Zoning laws can also burden real estate, especially if the buildings will be used for commercial purposes. Most businesses must be operated in special business or industrial zones which have to be a certain distance away from residential zones. A real estate lawyer should analyze potential commercial properties to make sure that the zoning laws will allow the type of business or other activity that the buyer desires.

For example, pawn shops, department stores, liquor and tobacco shops, and even restaurants are often segregated into certain zones. A building outside the correct zone will not be able to secure necessary operating permits and licenses, unless an attorney can successfully petition the municipality to allow an
exception—which is sometimes an uphill legal challenge.

Almost every real estate sale requires title insurance, which guarantees that the property’s title is being transferred via a deed from the seller without any unforeseen encumbrances. Encumbrances are any burden or claim against the property which reduces its value and ties up the title. Common encumbrances may include a deceased owner’s name remaining on the property deed, a judgment or subcontractor’s lien which must be satisfied, or an imminent foreclosure of the mortgage.

The parties should work with a reputable and professional title company to ensure that an appropriate title insurance policy covers the transaction and all encumbrances are either removed or effectively managed

It is always recommended that buyers purchase an additional, independent home inspection report from a professional inspector to locate any issues the seller may have missed or failed to disclose. For sellers, it is important to carefully review the answers provided on the Real Estate Condition Report with an attorney so that the seller does not accidentally commit a fraudulent act by failing to disclose a known defect. Failing to disclose obvious and clear defects can lead to messy and expensive lawsuits from angry buyers who have moved into a defective home post-closing.

How does a home inspection impact my closing?

Proceeding to closing, an attorney will assist with tracking the various contingencies that must be met in order to close the sale—such as the buyer securing a loan or other funding, the seller repairing broken or outdated items, or even the buyer selling their prior home. Sometimes the parties will sign an Addendum after they have entered the closing process in order to change aspects of the deal before final payment is made and title is transferred.

For example, the buyer might demand a lower purchase price, or the repair of a certain item, because new structural problems were discovered by the buyer’s home inspector. At closing, a real estate attorney should review all of the closing documents for accuracy and completeness before the parties finish the transaction and make payment.

A lawyer is not specifically required for real estate transactions; however, they are recommended to oversee the process. Buying and selling a home is complex, with large amounts of money changing hands. During the transaction, a lawyer will be able to advise you on the legal aspect of negotiation, contract signing, closings, and generally protect your interests.

On the flip-side to buying a home, someone selling a home make sure there are no claims or liens against the property. It is also important to determine the parameters of the transaction, such as the lowest price you will accept for the property and what items or appliances will be included in the sale. It is a good idea to speak with an attorney before making a transaction of this complexity.

There are several ways to hold title to a real estate property. Some of these include joint tenancy, tenancy in common, and sole ownership. With joint tenancy, ownership is shared between two or more people. If one owner dies, the ownership passes automatically to the other owners without probate. Tenancy in common, however, is where two or more people hold separate ownership in one property according to their respective ownership percentage. Lastly, in sole ownership there is just one owner or entity that holds title to a property. Speak to your attorney to discuss your options.

A deed is the document that transfers ownership, or title, from a seller to a buyer. The two common types of deeds are warranty and quitclaim. A warranty deed guarantees that the seller has full title and right to sell ownership to the buyer. It also assures the title is clear of liens and encumbrances that may cause future property issues. A quitclaim deed does not offer the same assurances and protection. Instead, it is merely the transfer of any interests the seller may have in the property. This type of conveyance is more common between family members who are transferring title without the exchange of money.

With some high-stakes transactions, escrow is required to protect the buyer and seller until the deal is complete. Escrow is a guarantee that the buyer actually has the funds to purchase the property, and the seller actually has title to that property. Essentially, a buyer gives the funds to purchase the house to a neutral third-party, who holds the funds until the transaction is done. Then the funds are transferred to the seller. This tool helps ensure trust throughout the process.