The Denver Post reports that the local housing market is showing signs of improvement as both the demand for houses and the number of houses under contract is significantly up from the prior year. There is no doubt that favorable interest rates are helping to fuel this activity in the residential real estate market.
Although Colorado does not require that attorneys be involved in your real estate transaction, buying a home may be the largest and most significant purchase in your lifetime. The buying process involves a number of players such as realtors, title company representatives, lenders, and closing agents. In addition, although the purchase agreement is the single most important document there is a significant amount of additional documentation such as lending documents, title commitments, title exceptions, and property disclosures that are required as part of the transaction. Given the number of parties and documents involved, buyers often find themselves with a number of questions concerning their proposed purchase. Common questions include :
- What if the financing falls through or if the appraisal does not support the purchase price?
- If the property has been altered or additional finishes added were these alterations or additions performed legally?
- What happens if the inspection shows termites, asbestos, radon, or lead based paint?
- Under what circumstances can I terminate the purchase contract and get my earnest money back?
- What happens if the buyer won’t close?
- Can I terminate the agreement with my realtor?
Buyers can be overwhelmed by such questions. However, an attorney can serve to assist you through the process. An attorney can review and negotiate the purchase agreement and other contracts, answer your questions, and make sure that your interests are protected. An attorney can also help to ensure that you understand the title commitment and the items that are excluded from coverage that will not be covered by your title insurance policy. Finally an attorney can help resolve easement, right-of-way, boundary or other encumbrance issues that may arise in connection with your transaction.
Most importantly an attorney can act as your advocate in the transaction and ensure that you understand the transaction and are comfortable with its terms. If you have questions concerning your pending real estate transaction, please contact our Business Law Group partner, David A. Closson at [email protected].