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Know These 3 Important Aspects of a Real Estate Contract

real estate contractDealing with real estate can be extremely stressful for both the property owner and the prospective buyer/renter. Real estate contracts should be thoroughly filled out, but if both parties are unsure about any aspects of real estate law, some serious problems could occur.

That’s why working with an experienced real estate attorney is essential when handling property deals. These attorneys are familiar with real estate law and can assist throughout the entire buying or selling process. It’s up to you to get in touch with an experienced attorney. If you wish to speak to a professional real estate law firm, contact the DiJulio Law Group today.

In California, the State of Frauds requires at least three types of real estate contracts to be in writing: any lease that’s over one year, any commission agreement between licensees and principals, and any documents of sale for the property.

Along with having proper documentation, there are a few other important aspects of real estate contracts that are necessary for all parties.

The Closing Date

The closing date must be present on the contract. Usually, it takes between 30 to 60 days to close. This information is essential for the deal because both parties could have other properties they plan on living in for a few months until the deal goes through. You might also have to get settled in at a new job if you’re moving to a new area, so it’s important to know exactly when you can move in and start getting things in order.

Inspection Clause

A home inspection clause allows the buyer to completely walk away from a deal if significant damage is evident. Unfortunately, there are real estate sellers who try and take advantage of buyers, so make sure you and your attorney schedule thorough inspections before, during, and after the buying process.

Financing

One of the most important aspects of any contract is simply the finance terms involved. All mortgage information should be outlined in the contract and it should state that the offer is contingent upon financial backing at a specified interest rate.

Real estate deals and contracts should be taken seriously because these are important documents that have a direct effect on your future. Call the DiJulio Law Group today if you want to learn more or speak with an experienced attorney.

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A Few of the Pros and Cons of Buying a Foreclosed Home

buying a foreclosed homeApproximately one in every 96 homes saw a foreclosure filing in 2013, a number that had fallen to one in every 122 in 2015. However, just because a home is foreclosed doesn’t mean it isn’t a worthwhile investment. In fact, for many home flippers, buying a foreclosed home represents a major opportunity.

Homes are foreclosed for a variety of reasons, and a foreclosure isn’t a sign of low value. If you’re looking into buying a foreclosed home, here are a few things you should know.

What Happens After the Foreclosure Process?
When a bank forecloses on a home, it means that the tenant experienced some form of financial issue. Because there’s nobody living in that home to make mortgage or rent payments, the bank loses money. As a financial institution, losing money neither looks good nor benefits them in any way. As a potential buyer, that’s where you come in.

Benefits of Buying a Foreclosed Home
The primary reason to buy a foreclosed home is the potential deal you may get on a beautiful house. Any real estate attorney can tell you that the foreclosing lender doesn’t want to hold on to the home because, as previously stated, they’re losing money while it’s in their possession. As a result, they may offer it at a much lower price than it would be listed otherwise.

Home Upgrades
If you want to buy a foreclosed home, you can use the status of the house to your advantage. Because of the typically lower price point, it’s often much easier to purchase a better home in a neighborhood that is more desirable to you.

Financial Gains
Because the price you paid for the home is below market value, the decision to sell, even if the home depreciates, can result in some serious financial gains.

Cons of Buying a Foreclosed Home
In some situations, the disadvantages outweigh the potential gains when buying a foreclosed home, but the potential issues will vary greatly from case to case.

Overdue Home Repairs
Unfortunately, foreclosed homes can fall into disrepair while they’re uninhabited. Real estate lawyers have begun referring to these houses as “zombie homes” because of their distressed status. While you might buy a home for a great price, you should take care to have it properly assessed to find out what kind of work needs to be done.

Inherited Debt
When buying a foreclosed home, you may become responsible for the debts left by the previous owner. Before purchasing, you should make sure to take the time to fully understand the potential financial burdens you may be taking on with a foreclosed home.

In the end, foreclosed homes aren’t much different than any other homes on the market, with one major difference: the price. While they may have some financial strings attached, the advantages outweigh the negatives in a vast majority of cases.

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Know Who to Call During These 3 Stressful Real Estate Issues

boundary disputeCalifornia real estate law can be quite confusing. You may not anticipate ever having an issue, but you never know when a problem might arise. Problems with neighbors, problems with landlords, problems with banks, or problems with the law can all potentially lead to unwanted stress and living uncertainties.

Here are a few of the potential real estate issues that could arise in California.

Boundary Disputes
One of the most frustrating real estate problems is a having a boundary dispute with your neighbor. It could come up as soon as either you or your neighbor move in; in other cases, disputes arise when you least expect them. To avoid these unwanted boundary disputes, make sure that you have all real estate documents stored in a safe place so you can access them when necessary. It’s also recommended that you consult with a real estate attorney during any dispute as well.

Eviction Process
Being evicted can be one of the most stressful events in a person’s life. There is so much uncertainty about what’s to come and where you should go. It’s important to be 100% sure that your landlord is acting lawfully and that all eviction notices were given in the allotted amount of time. In California, if a tenant has lived in the property for more than one year, the landlord has to provide a notice to vacate at least 60 days prior to the eviction.

Foreclosure Process
Another scary time in a person’s life is during a foreclosure. This can be even more intimidating because banks are involved and the repercussions could last a lifetime. It’s important that you contact an experienced real estate attorney as soon as you think you might be in danger of being foreclosed. There are plenty of laws that protect your rights of fair notice and amount of time to come up with the money.

Don’t handle these stressful situations on your own, because they can go from bad to worse quickly. Consult with a real estate attorney who can help. If you need any assistance with real estate in California, contact the DiJulio Law Group today.