Buying and selling real estate is a huge event in the lives of the people involved, both financially and emotionally. The Buyer and Seller may need protection to assure the transaction is what they expected.

1.  Q:  Is the standard Texas Real Estate Commission Earnest Money Contract between the Buyer and Seller just an "offer"?

• No, the Buyers are committed to buy the real estate and the Sellers are committed to sell.
• The Earnest Money Contract is not merely an offer of "price"; rather, it binds parties to all obligations related to appraisals, inspections, repairs, survey encroachments and loan approval.      
•  Buyers have majority of the risk.
• TIP: Consult an attorney before you sign the Earnest Money Contract because real estate agents cannot give legal advice and it is a legal document.

2.  Q:  Are New Home Construction Agreements different from Standard Earnest Money Contracts?

• Yes, radically different.
• There are few legal requirements on residential home builders.
• Change orders should be in writing and designate costs.
• Buyer should plan for:

      a.)    Time Delays (temporary housing)

  b.)    Cost Overruns

  c.)     Interest rate increase if house not completed when interim loan expires.

3.  Q:  What is the title company's role?

• To provide title search and check outstanding liens on the property.
•  Title company will not "take sides" if Seller and Buyer dispute.
• Title company is not responsible for Seller's escrow at mortgage company.
• Title company is not responsible if ad valorem taxes increase.
• Title company is not responsible for boundary disputes.

4.  Q:  What are the "Closing Documents"?

•  Loan documents to be signed by Buyers (Usually 50-100 pages).
•  HUD Settlement statement indicating sales price and all deductions, credits and total payments to Seller and owned by Buyer.
• Title company disclaimers.

5.  Q:  Should the Buyers ask Sellers to perform repairs?

• Repairs can be the most controversial part of transaction.
• Sellers may not perform repairs to satisfaction of the Buyers.
• Buyers may choose to negotiate a price reduction and perform repairs themselves.

6.  Q:  What if the Sellers and Buyers have a dispute?

• All of their remedies were those stated in the Earnest Money Contract.
• Mediation is inexpensive and quick, but not-binding.

7.  Q:  What is the experience of the Law Firm of Joanne M. Badeaux, P.C.?

• Drafts, reviews, and negotiates Real Estate Contract.
• Reviews Closing and Loan Documents.
• Drafts and negotiates Commercial Leases.
•  Prepares Seller Financing Documents, warranty deeds, promissory notes.
•  Drafts Incorporation, LLC, and Partnership Documents if buying commercial or investment property.

For further information or to schedule an appointment, contact this law firm, Joanne M. Badeaux, P.C. at (281) 486-4737. jmb43@law-firm.cc