Frequently Asked Questions In Buying and Selling a Home

Do I need an attorney to advise me on my home purchase or sale?
What are some of the pitfalls in the home purchase and home sale process?

What does an attorney do in the closing process?

What is the difference in an real estate appraisal, a property survey and a home
inspection, and do I need all three?

What is a “home warranty” or a “home protection plan”?

What is title insurance?

Do I need an attorney to advise me on my home purchase or sale? 

           
The use of an attorney may prove exceedingly helpful in the purchase or
sale of your home.  An attorney, experienced in the process of home purchase, may provide a multitude of services throughout the real estate transaction.  An
attorney can be most beneficial in the contract drafting stage of contract
preparation by offering custom suggestions to address your particular needs in
the home purchase.  While extremely experienced in helping buyers and sellers, your Realtor® cannot give you legal advice.  Contact Closetrak,LLC for assistance BEFORE you sign your contract to purchase or sell your home.

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What are some of the pitfalls in the home purchase and home sale process?

Pitfalls in the home purchase and
sale process include improperly drafted contracts, unqualified buyers, missed
closing dates, title defects, poor advice from unqualified sources, improper
disclosure of material facts or defects, survey problems, lack of proper or
necessary inspections, and many more.  While all risk in a real estate transaction cannot be eliminated, the risk can be minimized or managed with proper advice.  Let Closetrac, LLC assist you to avoid or limit your exposure to these pitfalls.

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What does an attorney do in the closing process?

           
An attorney, and their staff, may provide one, or typically several of
the following services, along with many additional services:

·       Provide advice concerning contract drafting.

·       Give advice on the legal implications of the contract and other
documents.

·       Assist in negotiation for the purchase or sale where required.

·     Obtain and examine title evidence to assure good title to the
property.

·       Order and review of a property survey.

·       Request payoff statements for any encumbrances.

·       Obtain or review a commitment for a title insurance policy.

·       Coordinate the closing with other professionals in the
transaction.

·       Prepare a statement of closing costs including proration of taxes,
etc.

·       Prepare and review loan documents.

·      Prepare or review deeds transferring the property.

·       Close the transaction and explain the documents involved in the
closing.

·       Collect and disburse the funds required for closing.

·       Obtain releases of the Deed(s) of Trust and other encumbrances
affecting the property.

·       Manage recording of the Deed, Deed of Trust and other documents.

·       See to the issuance of title insurance.

·       Follow up on post closing matters.

Let the attorneys at Closetrak, LLC assist you in your real estate
transaction.

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What is the difference in an real estate appraisal, a property survey and a home inspection, and do I need all three?

           
A real estate appraisal is an opinion of fair market value of a particular piece of property.  The appraisal MUST done by a licensed professional who visits the property.  The appraiser may calculate square footage of the dwelling, look at its
general condition, compare it to other comparable sales in the area, compare
features with comparable properties, analyze market conditions and arrive at a
value for the property.  The appraiser does not review the same features as a home inspector.

           
A property survey is drawing of property boundaries with a depiction of
the boundaries, structures, fences, easements and other features shown on the
drawing.  The drawing, to be called a survey, MUST be done by a licensed surveyor.  In the typical residential real estate transaction, a product
known as a “mortgage loan inspection” is substituted for a survey. 
It is not required in Tennessee that a surveyor prepare the “mortgage
loan inspection” however in this area most are done by surveyors.

           
A home inspection is done by a professional trained in evaluating the
condition of property, its appliances, equipment and amenities. 
The home inspector will visit the property to test and inspect various
components of the home. The inspector will then prepare a written report as to
their findings and recommendations concerning the condition of the property. 
The home inspector does NOT determine value of the home.

           
The purchase of a home may require the services of one or more of these
professionals.  Each provide an extremely valuable service in the home
purchase process.  To discuss the need for the services of these and other professionals call one of the attorneysat Closetrak, LLC .

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What is a “home warranty” or a “home protection plan”?

           
A home warranty is generally a promise that a property is free of listed
defects.  Home warranties are often
provided by homebuilders on newly constructed homes. 
The warranty may be backed by a third party who will partially guarantee
the home to free be of material defects in workmanship and materials, guarantee
the major systems in the home (plumbing, electrical, heat, air conditioning,
etc.), and guarantee the home to be free of structural defects. 
The warranty period for the various components of the home will vary from
plan to plan.

           
A home protection plan is generally in the nature of a service contract
administered by a third party.  These are available on existing homes.  These
may be referred to as a home warranty, but differ in that they are less comprehensive.  The plan will provide coverage for systems and appliances for
a given property for one year.  Many of the plans offered may be renewable from year to year. They will usually have a deductible feature for each service visit.

           
The differences in plans and warranties may be dramatic. 
They should be thoroughly reviewed prior to purchasing a property because
of a purchaser’s reliance on a particular plan. 
For help in understanding a particular plan, call Closetrak, LLC and discuss your need with one of our professionals.

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What is title insurance?

           
Your home is typically your most expensive and important investment. 
A review of the public records may not discover defects in the title to property.

Title insurance is a single premium form of insurance that protects a homeowner, for so long as they may have any interest in their home, against matters that may not be discoverable by an examination of title to real property such as:

·       False impersonation of the true owner of the property

·       Forged deeds, releases or wills

·       Undisclosed or missing heirs

·       Instruments executed under invalid or expired power of attorney

·       Mistakes in recording legal documents

·       Misinterpretations of wills

·       Deeds by persons of unsound mind

·      Tax liens against an owner that may not yet be recorded

·       Deeds by minors

·       Deeds by persons supposedly single, but in fact married

·       Liens for unpaid estate, inheritance, income or gift taxes

·       Fraud

·       Unposted taxes

           
Title insurance will protect you against these type of unknown risks and
will pay for defending against any lawsuit attacking the title and either clear
up the problem or pay the loss to the insured. 
Tennessee law requires that you be offered owners title insurance at the
closing of your home. For more information on how title insurance may assist
you, contact Closetrak, LLC.

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