Expert: Jessica Bryan - 2/15/2006

Question
I am considering buying the house I rent currently from my landlord.  There will be no realtors involved.  I want to make sure I have all my bases covered.  Could you give me the steps I need to do to make sure I get all the paperwork done correctly so I don't miss something important?

Answer
Dear Kelly;
Buying and selling real estate is different and with slightly different procedures, paperwork and  requirements in every state.  The only way you can be certain that you have the up-to-the-minute information is to consult an atorney or a local REALTOR.  Many agents will charge a small consulting fee just to look over the paper work and advise you.  The same is true of a real estate attorney. Next, go to a stationers and purchase a standard real estate contract. On the whole, you will need a good contract (offer to purchase should have a contingency protecting you in the event you can't get a loan.)  There should also be an inspection contingency and there should be an adequate group of inspections done with a way out if you are unhappy with the findings. There should also be a seller disclosure statement with any and all things disclosed including but not limited to HOA dues, assessments, structural defects, repairs, improvements, damage.  There should also be a survey done on the property and a title search done to make sure that you are buying what you think you are buying.  The price of the home should be comparable to all similar properties and an appraisal clause should be in the contract stating that if the home doesn't appraise, then you can get out of the contract and all earnest moneies and deposits be returned.

I hope that this helps.

Good luck and best wishes.
Jessica Bryan
Managing Broker
House to Home Realty Services