Archive for October, 2011

The Benefits of Consulting With a Real Estate Attorney

Posted on October 30, 2011 | Real Estate Law.

A real estate attorney can help you in a variety of related matters. Real estate may consist of agricultural, forest, brick, water, residential and commercial property. Well-informed lawyers know everything about any kind of property. They can advise you on matters concerning litigation, fraud, purchase agreements, leases, grants and concessions, and anything involving land legislation. A real estate attorney does not neglect any matter about land legislation, however small. They can help you with legal matters, as well as financial and business matters. Therefore, it pays to hire a professional to have him or her as a specialist legal consultant in a business. The Truth in Lending Act obligates creditors to disclose all the credit terms and borrowing costs of the creditor. The Board of Governors of the Federal Reserve System implements the Truth in Lending Act.

Congress created the Truth in Lending Act to accurately inform creditors of their credit costs and the exact provisions of credit loans. Many mortgagors are unaware of the exact provisions of the Truth in Lending Act and therefore this law is often violated because mortgagors are ignorant of it and their rights concerning the law. If there is a violation of the Truth in Lending Act, this can be a basis for rescinding the loan contract. Therefore, all mortgagors should carefully consult with an attorney to see if their creditors have faithfully complied with the law. The Truth in Lending Act came about because of many fraudulent acts by mortgagees on unsuspecting mortgagors that caused creditors to gain unduly at the expense of their debtors. Many mortgagors lost their properties because they were unaware of onerous terms in their mortgage contracts.

Therefore, to plug these loopholes, congress passed the Truth in Lending Act to curb abuses of mortgagees against their mortgagors. Since the passage of the Truth in Lending Act, mortgagors had a legitimate defense against being taken advantage of by their mortgages. Another important legislation that prevents further abuses in transactions is the Real Estate Settlement Procedure Act of 1974. Oftentimes contracts have many hidden fees that are not disclosed to the buyer at the time of sale. The Real Estate Settlement Procedure Act makes it mandatory for sellers to disclose any additional cost to buyers who may be unaware of these costs before the contract between them takes effect. Therefore, buyers will know of any additional costs they have to incur before buying a property. These additional costs encouraged the practice of kickbacks in real estate transactions at the expense of the buyer. The law reduced the amount of escrow to cover large deposits required in contracts.

Before the Truth in Lending Act and the Real Estate Settlement Procedures Act were passed, knowledgeable companies found many loopholes in the law that enabled its circumvention. Lawyers can spot a circumvention of those laws and advise the client of all the appropriate counter-measures that can be taken to avert any losses. Lawyers can inform you of your existing rights and the ways to counter the effective circumvention of the law. Real estate lawyers can review all your loan contracts and discuss all the options with you if a violation or circumvention of the law occurs so that you can rest assured that your rights are being protected.

The Importance of Conveyancing When Buying a Property

Posted on October 25, 2011 | Real Estate Law.

Buying property is a truly unique experience. Not only is it the most expensive purchase most of us will ever make, but the process involved is more complicated than you would think. Many people believe it is simply a matter of perusing what houses are for sale, finding the perfect fit for you, and organising the financial side of things; but there are more pieces to the puzzle that must be sorted before you can move into your dream home – understanding the conveyancing process will help your property purchase go smoothly.

Prior to a sale taking place, the process of conveyancing must first be completed. Put simply, conveyancing is an area of law concerned with the transfer of property from seller to buyer. When property changes hands, the services of a lawyer are required in order to ensure that the title effectively passes between the parties, conferring all rights associated with ownership onto the buyer. Wherever you choose to buy a property, conveyancing is the sum of all elements required for completing the transaction.

You might ask, ‘Isn’t conveyancing something I can do without the help of a lawyer?’ Well, yes and no. Conveyancing is more than just a one step process; it is made up of a series of tasks that are far easier with the aid of legal advice. A conveyancer will, among other things, review the current agreement for sale and purchase, conduct a title search outlining any potential restrictions on the property, and obtain a guaranteed search of title, which protects property buyers from third party claims immediately before and after settlement. They will also handle other important documentation, such as preparing mortgage materials, carrying out the transfer of ownership, and finalising settlement. Throughout this surprisingly detailed and highly involved process, your conveyancer will be on hand to issue helpful advice as required.

As with any transaction, there are two sides to consider, and the conveyancer plays an equally important role on behalf of whoever is selling the property. They will ensure that all charges are up to date, and arrange for the outstanding mortgage to be paid and discharged following the sale. Meanwhile they will report to the seller with any developments as they arise, and provide legal advice in a timely fashion.

More complicated than looking at what houses are for sale in the newspaper, right? Conveyancing, while an often complicated process, can still be an easy one for the buyer and seller. The internet age has seen the rise of the online conveyancer, who can perform all the same functions as a lawyer, at a fraction of the price. If you can find a specialist online conveyancing service that is reputable, with experienced legal practitioners on staff, you will be able to outsource the technical aspects of buying and selling property without the costs associated with directly employing a lawyer. Conveyancing is important, essential, and unavoidable; but it doesn’t have to be a hassle.