Comprehensive Guide to Residential Purchase and Sale Services in Harrison
Buying or selling a home in Harrison, Tennessee involves more than signing documents; it requires careful attention to contractual details, title matters, disclosures, and local rules that affect property rights. At Jay Johnson Law Firm we help clients navigate each step of a residential purchase or sale so transactions close smoothly and predictably. From reviewing contracts and contingencies to coordinating with lenders, inspectors, and title companies, our approach focuses on identifying potential legal issues early and communicating practical options so you can move forward with confidence in your real estate decisions.
This guide explains the common stages of a residential real estate transaction in Hamilton County and outlines the legal protections and processes buyers and sellers should expect. We cover contract review, title and survey review, negotiations over repairs or credits, closing requirements, and post-closing concerns. Whether you are purchasing your first home, relocating within Tennessee, or selling a property in Harrison, understanding the legal mechanics helps reduce surprises and keep timelines on track. Our goal is to provide clear information so you can make informed choices during each phase of the transaction.
Why Legal Support Matters for Harrison Residential Transactions
Legal support in residential purchases and sales protects your interests by ensuring contracts reflect your intentions, contingencies are enforceable, and disclosures comply with state requirements. Counsel can spot title defects, unresolved liens, or deed issues that could delay or jeopardize closing. Having legal review of inspection results, repair addendums, and closing documents reduces the chance of costly mistakes and helps clarify responsibilities between buyers and sellers. Sound legal guidance also assists in bridging disputes, negotiating favorable settlement terms, and coordinating with lenders and title companies to bring transactions to successful conclusion.
About Jay Johnson Law Firm and Our Real Estate Services
Jay Johnson Law Firm serves clients across Tennessee from our Hendersonville and regional offices, including residents of Harrison and Hamilton County. Our team assists with residential purchase and sale matters by providing contract review, title analysis, closing coordination, and risk assessment. We focus on practical solutions tailored to each client’s situation, offering clear explanations of legal terms and realistic timelines so clients can proceed confidently. Our practice emphasizes responsive communication, careful document review, and coordination with agents, lenders, inspectors, and title companies to reduce friction during transactions.
Residential purchase and sale legal services encompass a range of tasks designed to protect the parties during a real estate transaction. For buyers, that includes reviewing the purchase agreement, verifying title and liens, clarifying warranty and disclosure obligations, and preparing for closing. For sellers, services include drafting or reviewing the contract, ensuring required disclosures are accurate, resolving title issues, and coordinating deed transfer at closing. These services help preserve the integrity of the transaction, reduce the risk of post-closing disputes, and ensure compliance with Tennessee law and local Harrison requirements.
Clients frequently benefit from legal involvement at multiple stages: negotiating terms before signing, addressing defects identified during inspection, and verifying settlement statements before closing. Counsel can guide decisions about contingencies for financing, inspections, and appraisal, as well as recommended remedies when obligations are unmet. Effective legal support anticipates common pitfalls such as unresolved liens, boundary discrepancies, or incomplete disclosure statements and helps implement practical steps to resolve those issues so closings occur on schedule and ownership transfers with clear title.
Key Definitions Related to Residential Transactions
Several legal terms frequently arise in residential transactions. A purchase agreement is the binding contract outlining price, closing date, contingencies, and obligations. Title search and title commitment identify ownership history and any liens or encumbrances that must be cleared prior to closing. Contingencies allow either party to back out or renegotiate if financing, inspection, or appraisal conditions are not met. Closing documents transfer ownership and settle financial obligations. Understanding these terms helps buyers and sellers recognize contractual commitments and the sequence of tasks needed to complete a transaction.
Essential Steps and Processes in a Home Purchase or Sale
A typical residential transaction follows a predictable sequence: negotiation and execution of the purchase agreement, completion of inspections and resolution of repair issues, securing financing and appraisal, title search and resolution of liens, and scheduling closing with settlement of funds and transfer of deed. Each stage involves documents and deadlines that affect the rights and obligations of both parties. Timely communication among the buyer, seller, agents, lender, and title company is important to meet contingency periods and closing dates, and legal review minimizes the risk of last-minute complications.
Glossary of Common Real Estate Terms for Harrison Buyers and Sellers
This glossary provides concise explanations of terms you’ll encounter during a residential purchase or sale. Knowing these definitions can help you interpret contract clauses, inspection items, title conditions, and closing statements. If a term or process is unclear in your transaction, ask for a plain-language explanation. Clear understanding reduces the chance of misunderstandings and supports timely decision making at each stage of the sale or purchase process in Harrison and Hamilton County.
Purchase Agreement
A purchase agreement is the principal contract in a residential real estate transaction that sets the purchase price, deposit amount, closing date, and any contingencies such as financing or inspection. It establishes each party’s obligations, including what must happen before closing and how disputes will be resolved. The agreement may include deadlines for inspections, loan approval, and title review. Reviewing the purchase agreement carefully can prevent misunderstandings, ensure key protections are included, and clarify what happens if contingencies are not satisfied by their deadlines.
Title Commitment
A title commitment is a preliminary report issued after a title search that identifies existing liens, encumbrances, easements, or ownership claims affecting the property. It lists requirements that must be satisfied before an insurer will issue a title insurance policy at closing. Examining the title commitment early in the transaction helps buyers and sellers understand potential title issues that could delay closing. Addressing those items ahead of time—such as paying off liens or clarifying easement matters—helps ensure the property transfers with marketable title.
Contingency
A contingency is a contractual provision that allows a buyer or seller to pause or withdraw from the transaction if specified conditions are not met within a set timeframe. Common contingencies include financing approval, satisfactory inspection results, and appraisal meeting the contract price. Contingencies protect parties from unforeseen events but require adherence to strict deadlines and notification procedures. Properly drafted contingencies give both buyers and sellers clear paths for negotiating remedies, extending timeframes, or terminating the agreement if conditions are unmet.
Closing and Settlement
Closing, or settlement, is the final step where funds are exchanged, the deed is recorded, and ownership transfers from seller to buyer. Documents signed at closing include the deed, closing disclosure or settlement statement, mortgage documents if applicable, and any affidavits or transfer tax forms required by local authorities. The title company or closing attorney typically coordinates disbursement of funds to pay off existing liens, agent commissions, and other closing costs. Confirming the accuracy of closing figures and documents shortly before settlement helps prevent last-minute issues.
Comparing Limited Review and Full-Scope Residential Legal Services
When seeking legal assistance for a home transaction, clients often choose between a limited review of specific documents and a comprehensive service that covers multiple stages. A limited review may focus on one contract or a single closing document and can be appropriate for straightforward transactions with minimal risk. Comprehensive service includes contract negotiation, title review, contingency management, and closing coordination, which can provide broader protection and continuity. The right approach depends on the transaction complexity, any known title issues, and the client’s comfort with managing negotiations and deadlines.
When a Focused Review May Be Appropriate:
Simple Transactions with Clear Title
A focused or limited legal review can be suitable when a transaction is straightforward: the property has a clear title history, financing is typical, inspection results show no major defects, and both parties agree on standard terms. In such cases, a targeted review of the purchase agreement and closing documents can identify potentially unfavorable clauses and suggest minor revisions without ongoing representation. This approach can save time and cost for parties comfortable handling routine communications with agents and lenders while still obtaining legal confirmation that key documents are in order.
Standard Form Contracts with Minor Amendments
When the sale uses a standard, well-understood contract and only small amendments are proposed, a limited review may provide the necessary protection. Counsel can confirm that contingencies are properly drafted, that deadlines align with lender requirements, and that any seller disclosures meet Tennessee statutory expectations. A short, document-focused review often suffices for transactions without complicating factors like unresolved liens, boundary disputes, or complex estate issues. Choosing this path depends on the client’s comfort level and the absence of red flags in title searches or inspections.
When a Broader Legal Approach Is Advisable:
Complex Title or Disclosure Problems
Comprehensive legal services are advisable when title issues, unclear ownership history, outstanding liens, or incomplete disclosures appear during pre-closing review. In such circumstances, counsel can work to clear liens, coordinate payoff procedures, and negotiate remedies or credits for unresolved inspection items. Handling those matters proactively reduces the likelihood of last-minute delays or post-closing disputes over ownership rights. A thorough approach also includes verifying deed language and easements so buyers receive the property rights they expect once the transaction completes.
Transactions Involving Estates, Trusts, or Unusual Conveyances
When a residential sale involves an estate, trust, power of attorney, or nonstandard ownership entity, comprehensive legal guidance helps confirm authority to sell, ensures required court or trustee approvals are in place, and addresses additional paperwork necessary for closing. These circumstances often require coordination with probate or estate counsel, drafting specialized closing documents, and verifying that all legal prerequisites are satisfied. Broader representation helps ensure the transfer complies with governing documents and state law, minimizing risk of later challenges to the conveyance.
Benefits of a Full-Service Legal Approach to Home Transactions
A comprehensive approach provides continuity of representation throughout negotiation, inspection, financing, title review, and closing. That continuity helps identify and address issues early, coordinate deadlines and communications among all parties, and provide consistent advice when disputes or unexpected developments arise. By overseeing the entire transaction, counsel can implement strategies to protect client interests, propose contract language to allocate risk fairly, and help avoid delays caused by overlooked title or lien problems. Clients gain clarity about obligations and increased certainty that closing will proceed smoothly.
Comprehensive service also tends to reduce stress for clients who prefer a single point of contact to manage legal tasks, coordinate vendors, and review all closing documents. The approach supports informed decision making at each milestone, from responding to inspection requests to reviewing settlement statements. For sellers, it ensures required disclosures are accurate and that deeds transfer ownership properly. For buyers, it helps confirm that title is marketable and that closing funds will be applied correctly, offering protection against post-closing surprises.
Greater Transaction Certainty
One key benefit of comprehensive legal involvement is greater certainty that the transaction will close as planned. Early review of title, proactive resolution of liens or survey issues, and careful alignment of contract deadlines with lender requirements help avoid delays. Counsel can recommend contingency language or protective terms that anticipate potential problems and provide pathways to resolution without derailing the sale. Clear oversight reduces the likelihood of last-minute surprises at closing, offering buyers and sellers a more predictable path to finalizing the transfer of ownership.
Streamlined Communication and Coordination
Comprehensive representation consolidates communications with real estate agents, lenders, inspectors, and title companies, which can streamline timelines and clarify responsibilities. When a single legal team oversees document review and negotiation, they can track deadlines, manage required signatures, and coordinate the flow of closing funds. That centralization reduces the risk of missed steps caused by fragmented communications and ensures that key documents are reviewed in context. Clients benefit from having a consistent advisor who understands the transaction history and current status.
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Practical Tips for Smooth Residential Transactions
Start Legal Review Early
Begin legal review as soon as the purchase agreement is signed to allow time for title searches, inspection negotiations, and lender requirements. Early involvement helps identify issues such as liens, survey discrepancies, or missing disclosures that might take time to resolve. Discuss contingency deadlines and coordinate with your agent and lender so that financing and closing timelines align. Proactive review reduces the likelihood of last-minute changes and supports a more predictable path to closing, giving you time to address any complications that arise during the pre-closing period.
Keep Communication Centralized
Review Closing Documents Before Settlement
Ask to review the settlement statement and final closing documents before the scheduled closing to confirm payment amounts, prorations, and payoff figures. Reviewing documents in advance provides an opportunity to ask questions and correct any errors in fees or disbursements. Confirm that the deed and any mortgage documents reflect agreed terms and that required signatures and affidavits are in order. Early review reduces the risk of needing to reschedule closing due to clerical mistakes and ensures the transfer proceeds without last-minute adjustments.
Reasons to Retain Counsel for Residential Purchases and Sales
Retaining legal counsel helps protect your interests at multiple stages of a residential transaction, from contract negotiation to closing. Counsel can identify problematic contract language, ensure disclosures meet statutory standards, and confirm title matters are resolved before settlement. Legal assistance is particularly beneficial when financing contingencies, inspection disputes, or title defects appear, because counsel can propose practical solutions and coordinate remedies with other parties. For sellers, legal review ensures accurate disclosures and proper deed preparation; for buyers, it offers assurance that title will transfer cleanly.
Even in seemingly routine transactions, legal review reduces the chance of costly errors and misunderstandings that could lead to post-closing disputes. Counsel helps clarify obligations related to repairs, prorations, and closing costs and ensures contingency deadlines are enforced or extended when appropriate. For clients unfamiliar with Tennessee or Hamilton County practices, an attorney’s guidance on local recording procedures, transfer taxes, and title company processes provides practical benefits that help keep the transaction on schedule and limit exposure to unexpected liabilities.
Common Situations Where Legal Assistance Is Advisable
Legal assistance is commonly sought when title searches reveal liens or gaps in ownership history, when inspection reports identify significant defects, when a sale involves an estate or trust, or when financing complications threaten the closing timetable. Clients also consult counsel when disputes arise over contract terms, earnest money disputes, or when a buyer or seller needs guidance on closing adjustments. Addressing these matters through counsel helps preserve bargaining positions and reduces the risk of delays or unexpected costs at closing.
Title Issues and Liens
Unresolved liens, judgments, or conflicting ownership claims discovered in a title search can delay or derail closing if not addressed. Counsel can assist by coordinating payoffs, negotiating releases, or advising on steps to clear clouds on title prior to recording. Early identification of title-related concerns allows time to obtain required documentation or negotiate adjustments to the sales contract. Handling these matters proactively helps ensure the buyer receives marketable title and the seller can convey property free of encumbrances at closing.
Inspection Disputes and Repair Negotiations
Significant defects uncovered during a home inspection often require negotiation over repairs, credits, or price adjustments. Legal counsel can review inspection contingencies, propose drafting language for repair addendums, and assist in documenting agreement terms so both parties understand who is responsible for remediation. Having clear, enforceable written revisions to the purchase agreement reduces the chance of later disagreement and helps ensure agreed-upon repairs are completed to satisfaction before or shortly after closing as specified in the contract.
Sales Involving Estates, Trusts, or Out-of-State Owners
Transactions that involve estates, trusts, guardianships, or out-of-state owners may require additional documentation and approvals to transfer title. Counsel can confirm that fiduciaries have the authority to sell, prepare necessary court or trustee documents, and coordinate required affidavits or indemnities. These situations can introduce timing and documentation complexities that benefit from legal oversight so the sale closes without later challenges to the validity of the conveyance or the authority of the signing parties.
Residential Purchase and Sale Services in Harrison, Hamilton County
We provide clients in Harrison with practical legal support tailored to residential purchase and sale transactions, covering contract review, title matters, negotiation of repair items, and closing coordination. Our team works with buyers and sellers to identify legal issues early, communicate clearly about options and deadlines, and coordinate with lenders and title officers to complete settlements. If you need assistance understanding a contract, resolving title questions, or preparing for closing, we can explain the steps involved and help you move forward with confidence.
Why Choose Jay Johnson Law Firm for Your Home Transaction
Clients choose Jay Johnson Law Firm for real estate matters because we focus on practical solutions and clear communication tailored to each transaction. We aim to anticipate common issues that can delay closing and guide clients through remedies that preserve value and reduce friction. Our approach is to explain legal concepts in plain language, coordinate with real estate professionals and lenders, and manage the documentation and deadlines that are essential to completing the sale or purchase successfully in Harrison and Hamilton County.
We handle the procedural aspects that often cause last-minute delays, including title review, payoff coordination, and closing document preparation. By overseeing these elements and keeping clients informed about timing and obligations, we help meetings and settlements proceed on schedule. Whether you are purchasing a home, selling a property, or resolving contract issues during escrow, our team provides consistent support to keep the transaction moving forward and to address questions that arise from lenders, agents, and title companies.
Our local knowledge of Tennessee recording practices and Hamilton County procedures helps avoid common pitfalls at closing and ensures required forms are prepared accurately. We work to protect clients from unforeseen liabilities by reviewing seller disclosures, verifying payoff amounts, and confirming deed language and mortgage releases prior to settlement. For transactions involving estates or trusts, we coordinate necessary additional documentation to avoid recording issues and ensure a clean transfer at closing.
Contact Us to Discuss Your Harrison Home Transaction
How We Manage Residential Purchase and Sale Matters
Our process begins with a document review and initial consultation to understand transaction details, timeline, and any specific concerns. We then perform or review the title search and coordinate with your lender and title company. Throughout the escrow period we monitor deadlines, review inspection results and proposed repair agreements, and prepare or review closing documents. Prior to settlement we confirm payoff amounts, closing figures, and recording instructions so the transfer of ownership occurs with accurate documentation and clear title.
Step 1: Agreement Review and Title Examination
In the first step we analyze the purchase agreement, identify key dates and contingencies, and request the title commitment to evaluate any current encumbrances or ownership issues. This review allows us to advise about potential negotiation points, necessary contingency language, and actions to resolve title exceptions. Early attention to these items puts clients in a stronger position to address issues that could impact financing or closing, and it creates a roadmap for resolving problems before settlement.
Contract Review and Contingency Planning
We review the purchase agreement to confirm that contingencies for inspection, financing, and appraisal align with your needs and timeline. This includes clarifying responsibilities for repairs, occupancy, closing costs, and any special conditions. We advise on timelines for deposit release and notice requirements for exercising contingency rights. Properly drafted contingencies and clear deadlines are essential to protect a buyer’s ability to withdraw or negotiate and to ensure the seller understands obligations prior to closing.
Title Review and Addressing Exceptions
After reviewing the title commitment, we identify liens, judgments, easements, or other exceptions that need resolution before closing. We coordinate with the seller and title company to obtain payoff statements, release documentation, or additional information necessary to clear defects. Addressing these title matters early allows sufficient time to obtain releases or negotiate adjustments, which reduces the chance of last-minute delays and helps ensure the buyer will receive a marketable title at closing.
Step 2: Inspections, Negotiations, and Financing
During this phase we review inspection reports, advise on repair requests or credits, and ensure financing contingencies are being satisfied. Communication with the lender about appraisal timing and any documentation requirements is critical. If inspections reveal significant issues, we help negotiate reasonable solutions—whether repairs, credits, or price adjustments—documenting agreed-upon terms in written addenda so there is a clear record heading into closing.
Handling Inspection Results and Repair Agreements
When inspection reports identify defects, we assist in drafting addenda that set out which repairs will be completed, timelines for completion, and any credits or price adjustments. Clear documentation of repair obligations prevents later disputes and supports a smooth closing process. We also recommend language to protect buyers if repairs are not completed satisfactorily before closing, and advise sellers on reasonable responses to repair requests that preserve the transaction under fair terms.
Coordinating Appraisal and Loan Conditions
We monitor appraisal outcomes and lender conditions to ensure financing contingencies are managed timely. If an appraisal comes in below the contract price, counsel can advise on possible paths, such as negotiating a price reduction, requesting a reconsideration of value, or addressing financing alternatives. Ensuring lender requirements are satisfied before closing reduces the risk of funding delays and helps keep the scheduled settlement date intact.
Step 3: Closing Preparation and Post-Closing Follow-Up
In the final phase we review settlement statements, confirm payoff figures, verify deed and mortgage documents, and ensure recording instructions are correct. We coordinate the distribution of funds and confirm the conditions for disbursement. After closing we follow up on recording to confirm the deed has been properly filed and provide guidance on any post-closing items such as final utility transfers, keys, or escrow holds so the new owner can take possession with confidence.
Final Settlement Review and Funding Coordination
Shortly before closing we carefully review the settlement statement to confirm all prorations, fees, and payoffs are accurate. We check that the seller’s net proceeds and buyer’s required funds match expectations and that any credits or repairs have been properly reflected. Coordinating with the title company and lender on wiring instructions and required authorizations reduces the risk of payment errors. Confirming these details helps ensure funds are disbursed correctly at settlement.
Recording and Confirming Transfer of Title
After the deed is recorded, we verify the recording to confirm the buyer’s ownership is properly reflected in county records. We also ensure any mortgage or lien releases are recorded as needed. If recording issues arise, we work to resolve them promptly so the buyer’s title is clear. Providing clients with copies of recorded documents and a summary of post-closing tasks helps conclude the transaction with a clear understanding of the completed steps and any remaining administrative items.
Frequently Asked Questions About Residential Purchases and Sales
What should I look for in the purchase agreement?
A purchase agreement sets the blueprint for the transaction and should be reviewed with attention to price, deposit, contingencies, closing date, and any included fixtures or personal property. Ensure contingencies for financing, inspection, and appraisal are clearly specified with realistic deadlines. Pay attention to who is responsible for closing costs, repairs, and prorations. Clear language about remedies for missed deadlines or unmet contingencies helps protect both buyers and sellers and reduces ambiguity during escrow.It is also important to confirm any special provisions, such as occupancy agreements, seller concessions, or specific inspection scopes. If you have questions about ambiguous clauses or the allocation of responsibilities, request clarifying amendments before signing. Early legal review can suggest modest but effective contract language changes that align the agreement with your objectives and reduce the need for contentious renegotiation later in the process.
How does a title search affect closing?
A title search examines public records for liens, judgments, easements, or other encumbrances that could affect ownership. Discovering a lien or cloud on title can delay closing until the issue is resolved through payoff, release, or corrective documentation. The title search results in a title commitment that lists items that must be cleared for issuance of a title insurance policy at closing. Reviewing these items early gives the parties time to address problems before settlement.Title issues commonly found include unpaid taxes, mortgages, or recorded judgments against prior owners. If exceptions appear, counsel can help obtain payoff statements or work with the seller and title company to secure releases. Clearing title exceptions and confirming the ability to issue the necessary title insurance are critical steps to ensure the buyer receives marketable title at closing.
What happens if the inspection reveals major defects?
When an inspection reveals major defects, the buyer typically has options defined by the inspection contingency: request repairs, seek a price reduction or credit, or terminate the contract if parties cannot agree. The appropriate choice depends on the nature and cost of the defects, the seller’s willingness to address them, and the buyer’s tolerance for post-closing repair responsibility. Documenting repair agreements in a written addendum helps ensure both parties understand expectations and deadlines.Counsel can assist in drafting enforceable repair addenda and advising on when to demand repair completion prior to closing or accept a credit. If the seller disputes the findings, mediation or negotiation with the assistance of legal counsel can often lead to an acceptable compromise, preserving the transaction while protecting the buyer’s interests.
Who pays closing costs in Tennessee?
In Tennessee, who pays closing costs can be negotiated between buyer and seller and is specified in the purchase agreement. Commonly, buyers pay loan-related fees and title insurance for the lender, while sellers pay commissions and certain payoff amounts, but these allocations vary by transaction. Local custom and the leverage of each party in negotiations influence customary allocations, so it is important to confirm responsibilities in the contract to avoid surprises at settlement.Before closing, clients should review the settlement statement to verify who is charged for recording fees, transfer taxes, prorations, and escrow fees. If the actual closing figures differ materially from expectations, raise questions promptly so adjustments can be made to reflect the agreed terms and prevent funding delays at settlement.
How can I resolve a lien found on title?
If a lien appears on the title, resolution usually requires obtaining a payoff or release from the lienholder before closing. This may involve the seller paying off outstanding debt, arranging for a payoff from closing proceeds, or negotiating a resolution if the lien is disputed. Counsel can help obtain necessary payoff statements and coordinate with the title company to ensure documentation is in place to clear the lien at settlement.Some liens may require additional steps such as filing corrective documents or obtaining court orders, depending on the lien type. Identifying and addressing liens early is essential to prevent closing delays, and legal involvement often helps expedite the resolution by communicating directly with creditors and ensuring all required documentation is prepared for recording.
What should sellers disclose to buyers in Tennessee?
Sellers in Tennessee must provide statutorily required disclosures regarding the property’s condition, known defects, environmental concerns, and certain material facts affecting value or habitability. Accurate and complete disclosures protect sellers from later claims that information was intentionally withheld. If the seller is uncertain whether a condition must be disclosed, consulting legal guidance can reduce the risk of future claims and help ensure the transaction proceeds without dispute.Disclosure obligations can extend to known issues with structural integrity, past water damage, or other material conditions. A seller’s candid disclosure, supported by appropriate documentation, often facilitates smoother negotiations and reduces the potential for post-closing litigation. Counsel can assist in preparing disclosure documents and advising what information should be shared with prospective buyers.
How long does closing typically take in Hamilton County?
Closing timelines in Hamilton County vary but often take between 30 and 60 days from contract execution, depending on financing, title clearance, and scheduling availability. Transactions that are all-cash or that do not require complex approvals may close more quickly, while those involving appraisal delays, title issues, or estate documentation may require additional time. Maintaining clear communication with lenders, title companies, and agents helps keep the process on track.To help ensure a timely closing, respond promptly to document requests, schedule inspections and appraisals early, and confirm that required third-party approvals or trustee actions are obtained without delay. Legal counsel can monitor deadlines and coordinate with involved parties to address issues promptly, reducing the likelihood of extended closing timelines.
Can I back out of a purchase if financing falls through?
If financing falls through, the buyer’s rights depend on the terms of the financing contingency in the purchase agreement. A properly drafted contingency allows a buyer to terminate the contract without penalty if they cannot obtain a loan on specified terms within a set period. It is important to adhere to notice requirements and deadlines in the contract to preserve the right to terminate and recover any refundable deposits.If the buyer does not have a valid contingency or fails to follow contractual notice procedures, the seller may have remedies for breach, including retention of earnest money or pursuing damages. Counsel can review the contract language and advise on the appropriate steps to protect the client’s interests when financing problems arise.
What is a title commitment and why is it important?
A title commitment is the document provided after a title search that outlines the current state of the title and lists exceptions and requirements for issuing title insurance at closing. It identifies encumbrances like mortgages, liens, easements, and restrictions that must be addressed. Reviewing the commitment helps buyers and sellers understand what must be resolved and enables early action to clear items that could prevent issuance of an owner’s title policy at settlement.The title commitment also includes requirements such as payoff documentation, releases, or affidavits needed prior to recording. Working with counsel and the title company to satisfy those requirements reduces the chance of last-minute issues and supports a clear transfer of ownership upon recording the deed at closing.
Do I need legal review if my agent recommended a title company?
Even when an agent recommends a title company, it is prudent to have legal review of key documents and title matters to ensure your interests are protected. A title company facilitates the closing and issues title insurance, but attorney review adds an additional layer of scrutiny for contract terms, title exceptions, and closing documentation. Legal counsel can communicate with the title company and advise about required actions to clear exceptions or correct documentation prior to settlement.An independent legal review can also assist in interpreting settlement statements and confirming that recording instructions are correct. Clients who prefer a single point of coordination for legal, title, and closing matters often find that counsel’s involvement reduces the risk of oversight and helps maintain a clear path to closing.