Due to unprecedented times, we are seeing changes in the real estate market. A recent trend we are witnessing is a for sale by owner of real property. This essentially happens when there is a meeting of the minds between a buyer and seller.
Typically, a home would be listed on the open market and a buyer would put in an offer through their broker or agent. In a for sale by owner, the house typically does not go on the market and the purchase price is agreed upon by the parties.
Sellers sometimes go this route to skip having to pay commission to a real estate agent. However, it is important to understand the responsibilities the seller takes on and legal aspects of the transaction. If the seller isn’t particularly well versed in the selling process a misstep can be costly and quite stressful.
The parties involved with a for sale by owner transaction do need help to facilitate and complete the transaction. As real estate attorneys, we do the following:
- draft a purchase and sale agreement;
- open escrow;
- request preliminary title reports;
- interface with mortgage lenders;
- ensure contingencies are removed;
- facilitate the signing of final loan documents;
- and more.
All of this is done at a fraction of the cost than in a traditional purchase and sale of a home. As real estate attorneys and brokers, we have successfully completed these transactions.
If you have questions regarding this, please feel free to reach out to the law firm for a free 30-minute consultation.