1. Select an experienced and knowledgeable real estate attorney.
Selecting your legal counsel early on ensures that your interests are protected. Many sellers, when ready to put their home on the market, contact a real estate broker first. However, it is always a good idea to have the listing agreement reviewed by a qualified attorney before you sign it. Once signed, it is a legally binding agreement between you and your real estate agent. Your attorney can explain the terms and legal consequences of the sale and ensure that your interests and investment is protected. Having your legal counsel lined up is especially important when you decide to sell your home without the services of a real estate agent.
2. Select a competent and trustworthy real estate agent.
An experienced real estate agent can advise you on market conditions, the pricing of your home and repairs and improvements that attract buyers. It is imperative that you understand what the agent’s role is in order to ensure that your interests are protected.
3. Determine what services the attorney will provide and the fee she will charge for the services.
Talk to your attorney and discuss what services will be provided as part of representing you in the purchase of a home and what will be the attorney’s fee for those services. Having competent legal counsel during the transaction will ensure that your investment and your interests are protected.
4. Have your attorney review the listing agreement before you sign it.
A listing agreement is a document which outlines your rights and obligations as well as fees you are required to pay. Contacting your attorney is imperative before you sign this important agreement. Your attorney will be able to review it with you specific circumstances in mind and make suggestions to ensure that your investment will be protected. Moreover, your attorney will be able to review and explain the statutorily required disclosures and advise as to how to complete them for prospective buyers.
5. Contact you attorney once you receive an offer.
Once you receive an offer, contact your attorney to have her review it. Generally, there is a five day period for attorney approval. During that time, your attorney can evaluate the terms of the offer with your best interest in mind. Typically, the following terms need to be evaluated:
- Home inspection contingencies
- Mortgage financing contingencies
- Items of personal property to be included in the sales agreement
- Closing and possession dates
- Amount of earnest money
- Contingency regarding sale of buyer’s current residence
- Selection of a title insurer
- Prorated expenses such as property taxes and association assessments
6. Figure out your closing costs
At the closing, the ownership is officially transferred from Seller to Purchaser. At this time, the respective parties to the transaction, sign many documents and incur many fees. Your attorney is the best source to help you understand the intricacies of this process. Your attorney will review the documents and explain the financial implications for the Seller, who is usually responsible for the following costs at the closing:
- Listing and Selling agents’ commission
- Attorney’s fees
- Owner’s title insurance policy
- Survey
- Termite inspection (in Illinois usually required for transactions where Purchaser is obtaining a VA loan)
- Homeowner’s association fee
- Recording the mortgage release, and
- Transfer tax (state, county, and usually municipality)
Selling your home is a big decision. That is why it is imperative to work with an objective professional who will make sense of the complex transaction that home selling often is. Understanding the complex issues involved in a home selling process is key to ensuring a successful transaction and it all starts with hiring a real estate attorney.