Real Estate Terms You Should Know When Purchasing Your First Connecticut Home

 Posted on January 20, 2023 in Real Estate Law

Purchasing your first home is an exciting time. It can also be somewhat confusing and overwhelming, given all the components of the purchase process. The following is a brief overview of some of those key components and what they involve. For more detailed information if you are purchasing a home, contact a Stamford, CT real estate attorney.

The Binder

A binder is an offer to purchase. It is a formal written agreement between the buyer and the seller that holds the property until a formal offer to buy contract is drafted and signed by the parties. There is also a binder deposit – typically one percent of the purchase price – that the buyer will include with the binder.

Formal Contract

The next step in the process is for the formal contract of sale to be signed. Usually, it is the seller’s attorney who will draft this contract and then send it to the buyer’s contact for review. This contract will stipulate all the terms of the sale. When the contract is signed, the buyer will then pay a deposit with it, typically 10 percent of the purchase price.

Disclosures

During this process, the seller is legally required to disclose any issues in a signed property disclosure report. Although this is a legally binding document, it is still recommended that buyers take their own steps to check the viability of the property, such as a home inspection and land surveyor.

Title Search

Although it may not be legally required, it is highly recommended that buyers instruct their attorneys to conduct a title search of the property to make sure there are no encumbrances on the property, such as liens or mortgages, that could cause major legal issues on property ownership.

Another safety net to title issues is title insurance. If the buyer is taking a mortgage out to purchase the home, the bank or mortgage company will require the purchase of title insurance.

Mortgage Commitment Letter

The buyer will also receive a mortgage commitment letter that will show how much the buyer has been approved to borrow and the terms of the loan. It will also have any other requirements prior to the closing that must be addressed.

Do You Need a Fairfield County Real Estate Attorney?

Purchasing a home is a major investment and can be an expensive process. Do not risk making it even more expensive by not having a skilled Stamford, CT real estate lawyer representing you. Call Law Offices of Daniel P. Weiner at 203-348-5846 to schedule a free consultation and find out how we can help.

Source:

https://www.bankrate.com/real-estate/real-estate-terms-and-definitions/#additional