"Lawyers in Real Estate" with Natalie Mitchell and today’s guest Amy Skinner dives deep into the importance of a lawyer in property purchases. From land surveys to types of ownership, so many legalities fall into a piece of property. Things go wrong about 40% of the time, don’t let that happen to you!
“Lawyers in Real Estate” with Natalie Mitchell and today’s guest Amy Skinner dives deep into the importance of a lawyer in property purchases. From land surveys to types of ownership, so many legalities fall into a piece of property. Things go wrong about 40% of the time, don’t let that happen to you!
The lawyer is the last stop in the transaction and is responsible for seeing everyone’s work during the process. If employed in a timely manner, a lawyer can catch a lot of issues and resolve them before they are a real problem. One common issue with new construction condos and developments is zoning issues. A mortgage cannot be advanced until we have something to register it on. A tendency at will comes into play here as a document you will likely be signing during your purchasing process. This prepares you for generally five days of gaps and delays in your property between moving in and closing. As a purchaser, you do not yet own the property, but it provides a fixed amount of time for buffer if issues occur during the closing process.
Different types of ownership exist when looking at a piece of land. We have mineral rights (below ground), surface rights (roughly above or anchored to ground), and air rights (location dependent). There are also lease holds – property that has its own restrictions or rules, such as on national park land. Properties also have different variations of leases – solo vs. 2+ names on a title. When sharing a title with more than one person, there are two options as well: tenants in common or joint tenancy. Lots of logistics are present in these terms, which further highlights the importance of a lawyer to ensure all is filed correctly for the purchaser’s confidence.
Generally, when you are purchasing, on the day of closing you receive a property that is substantially in the same condition as the time of your last inspection/walkthrough. When something out of anyone’s control occurs (such as flood/fire) and the property is not substantially the same, it is unfortunate for everyone. Fortunately, the purchaser can get their money back, but it can get subjective. Two other reasons a buyer can walk away are due to property not being vacated, or real property report survey issues.
“You don’t need to have a good lawyer when things go right, you need to have a great lawyer when things go wrong. That happens about 40% of the time.”
Through this episode, Natalie and Amy share several examples of when things go unpredictably wrong to help piece these terms together. Things happen! Your lawyer is not a place where you want to skimp a couple bucks. They understand complexity of real estate law and all the details that go on within it. The difference in their rates is their quality of work that goes into it. If issues are happening to about 40% of all people, it might happen to you.
