Many people are warming up to the idea of building or purchasing their new home as the perfect reward for their hard work. It is an exciting feeling to create a design of your choice and a house that will become a forever home for your family for years to come.
Whereas this might be a dream come true, there are more complex issues that you need to take care of to turn your dream into reality. Whether you are building or purchasing your home, it will do you good to have the right people in your corner. The process might be overwhelming, but the good news is that you do not have to do it all yourself.
If you are considering building your home, here’s why a lawyer for home purchase will be an excellent addition to your payroll.
What Does a Lawyer for Home Purchase Do?
These are real estate lawyers that know how to write and analyze paperwork and contracts relating to the sale and purchase of a home and are legally authorized to do so. A lawyer for home purchase has vast knowledge and experience in the field to help you navigate through the many processes involved in building and purchasing homes. Some of the common scenarios they are likely to help you with include:
Explain complex law language — if you are purchasing a new house, a lawyer for home purchase will help you review the contract and identify any clauses that may be unfavorable for you. They will help break down the language jargon into more straightforward language that you can understand. The lawyer will also advise you on potential risks and negotiate for a favorable contract.
Representation — A lawyer for home purchase will be able to make claims on your behalf in the event that a partner or someone else fails to make timely payments. For instance, if you bought a home and some elements specified in the contract are missing, you have the right to claim, and your lawyer will help you do that.
Act as a mediator — when building a house, workers are exposed to work place injuries, and as the owner, you are liable to compensate them. Lawyers step in and act as mediators by consulting both parties to reach an amicable agreement. Hiring a lawyer will help you keep things on track and prevent issues from escalating to the court.
Tips in Choosing a Lawyer When Building a New Home
Experience — A seasoned lawyer with meaningful connections will be of benefit to you, especially in interpreting complex issues and advising you on matters dealt with before. How do I find a lawyer for a home purchase? Recommendations from friends and family could lead you to top-rated lawyers.
Licensed Lawyer — Some quacks will swindle you out of your money with no assistance on any legal matters as they have no authority to practice. Conduct your research and verify that the lawyer has a valid license to practice in your given state.
Professionalism — whereas friends and family can give you discounts on their legal services, it is advisable to seek the services of a professional lawyer who specializes in the area of construction and home purchase. Friends may not be specialized in the area and may not give you accurate guidance on the issues at hand.
You will be happy you hired a lawyer for home purchase to help you avoid common pitfalls most homeowners make. The consequences usually end up costing them many expenses that could have been avoided in the first place.
Drafting and Reviewing of Contracts
Any agreement must be accompanied by a valid contract where the involved parties are required to sign it to become a legally binding agreement. The contract is also supposed to protect the parties by providing a record of agreed-upon timelines, payment procedures, materials, and any other relevant details. For instance, a lawyer will draw up a landscaping contract during irrigation installations specifying the services, payment terms, and contacts of both parties. If a dispute were to ensue, the contract would serve as evidence detailing each party’s responsibility. The work of the lawyer is to look after your interests by drawing up a contract that is favorable to you. The same applies when a contract is presented to you. The lawyer will review it and find any clauses that may be unfavorable to you. The other party is likely to take advantage of you if you do not have a lawyer to explain hidden or unclear clauses. A lawyer will be able to assess both the strengths and weaknesses of the contract, sniff out any potential liabilities, and discover areas that have the potential of causing disputes in the future.
Filings
In construction, there is much planning involved and accompanying documentation. Each stage requires its own set of permits, and you need to adhere to certain construction standards as per the state you are building in. For instance, a licensed architect must do the architecture of your house. Your lawyer for home purchase will help you find reputable and certified architecture and design firms to do the job for you. Many firms are purporting to do a similar job but end up selling plagiarized designs. It can be a stressful situation, but with the help of your lawyer, you can avoid such pitfalls. In addition, a lawyer is aware of the paperwork needed for your project to take off and will plan for the projects, prepare required documents and submit them for filing to ensure your project takes off as planned. This saves you the trouble of doing the paperwork yourself and risks making mistakes leading to denied permits. Remember, denied permits lead to delayed projects and could consequently affect the cost of the entire project.
Taxation
Taxes can be a pain in the neck, especially if ignored or filed incorrectly. Each homeowner has tax obligations that they must adhere to or risk paying hefty fines. Remember, you will not be exempted from tax because you were not aware. Your lawyer for home purchase can step in and save the day by tax preparation and ensuring that you comply with the state’s tax laws and avoid any fines or foreclosures. If you are lucky, there might be loopholes your lawyer can explore for tax exemption and lower your tax bill.
Understand Local Laws
Each state has its own set of laws concerning building or developing land. With the help of a lawyer for home purchase, homeowner hopefuls can rest assured that they are entering into safe and legally binding contracts. Experienced lawyers have well acquainted with all the construction related laws so that you can build your new home with no restrictions. You may find out that the state in which you plan to build your house prohibits residential drilling services, and you will have to find another way to increase your water supply. Blindly purchasing or building a home without conducting due diligence could lead to long-term consequences.
Loan and Mortgages
Very few people can purchase or build their homes with cash at hand. The majority of homeowners will either take a loan or purchase mortgage plans to finance their projects. Whereas there is no harm in acquiring loans, there is a need to engage a lawyer to recommend the best way to finance the building of your dream house. The lawyer will scrutinize the loans and mortgage plans and find out whether there are any hidden charges or ambiguous clauses. The lawyer can also negotiate on your behalf for favorable interest rates and an extended payment period through mortgage interest deductions. Failure to consult a lawyer could lead to a foreclosure if you default in payments.
Dispute Resolution
A lawyer for home purchase has vast experience in various litigation and resolution techniques. Legal disputes are common when purchasing properties with multiple owners or failure to deliver as per the contract requirements. Your lawyer will step in and mediate to find a resolution that will benefit both parties. For instance, if the contract stated that gas was available, but you arrive at the site, and it is missing, your lawyer can get in touch with the realtor and gas line services to reach an amicable resolution. A deal will be offered and if not agreeable a case trial will be presented in court. The advantage of having a lawyer in such a scenario is that they are working to protect your interests. It is also advisable to get a lawyer as they are more experienced and stand higher chances of winning cases than when you do it alone, e.
Make Insurance Claims
When building a house, there are a lot of potential risks involved. Workers are exposed to Jobsite injuries, and construction materials are exposed to theft. If a worker was handling a firewood processor and caused injury, the worker is entitled to claim insurance. In the event that any of the risks occur, your lawyer for home purchase will guide you on the process of making claims to ensure you are compensated for your loss, or the worker involved receives compensation. You can also benefit from installing an intrusion monitoring system as a security system at the construction site to detect any intrusion. Evidence from the system can be beneficial in making claims from contractors insurance companies.
Title Search
Before building or purchasing a house, you must engage a lawyer for home purchase to conduct a title search. The lawyer verifies that the property you plan to be your forever home is free from any pending impediments such as caveats, liens, or judgments. The search will reveal whether the real estate agent or the seller is legally allowed to sell the property. The last thing you want to do is spend a huge sum of money on buying a property under a legal dispute.
In the event that a title search reveals problematic issues, your lawyer will advise you on the legal way to go about it. If the property has pending liens or judgments, the lawyer can hasten the process as they are usually well-connected in the industry and save you time and money. The lawyer can also secure proof of resolved liens and judgments if in the future you wish to obtain a loan against the property.
Estate Planning
Building the home of your dreams is a thrilling experience for you and your loved ones. It is a way to enjoy years of hard work by securing your future. While much time is spent planning and building the house, a small but critical issue is often forgotten. Estate planning and inheritance are important to think of when you are long gone. It would be best if you secure your assets by appointing someone to manage them.
Family matters are sensitive and can be quite costly if not handled the right way. Failure to put your affairs in order can negatively impact your loved ones when you are no longer here. Estate planning not only protects your family but also spares your heirs from a huge tax burden. Your lawyer will help you draw up your estate plan to protect your assets and prevent future potential disputes.
Hiring a lawyer makes economic sense for any home buyer because of the complexities involved in the transactions. Lawyers should not be limited to just large projects such as custom dock builders. They are beneficial for everyone who purposes to become a homeowner. Experienced legal counsel will help you navigate through the process seamlessly and protect your interests. You are safer having a lawyer at your corner than without.
