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Real estate transactions involve a complex web of legalities that it’s essential to carefully consider before making a purchase. Real estate, after all, is a significant investment, and having our experienced real estate lawyers in Lancaster, PA, on your side ensures you are protected throughout the process and beyond.
In the State of Pennsylvania, Let the Buyer Beware
When it comes to real estate transactions, Pennsylvania follows the legal principle of caveat emptor, which means “let the buyer beware” and highlights the critical role of due diligence for the buyer. This includes the responsibility of implementing thorough inspections before purchase.
The Purchase Agreement
The purchase agreement, also known as an agreement of sale or a purchase contract, is a crucial real estate document that clearly outlines the terms and conditions of the real estate transaction. Once finalized, it becomes legally binding, and provisions are included to protect both the buyer and the seller. Prime examples include all the following:
- Purchase price and financing contingencies
- Primary contingencies, such as inspections, appraisal results, title searches, and beyond
- Language that addresses responsibility for covering additional costs, such as attorney fees, transfer taxes, and title insurance
- Important disclosures about the property’s history, including any known defects as well as its current condition
Understanding the terms of your purchase agreement is crucial, and a skilled real estate attorney can assist you with this.
Using Deeds
For ownership of a property to be transferred from one party to another, a deed is required. Deeds are legal documents that officially grant title to the property’s owner. There are various types of deeds that serve distinct purposes.
General Warranty Deeds
General warranty deeds are a common feature in traditional real estate transactions, providing enhanced protection to the party making the purchase. A general warranty deed ensures that the new owner is protected from prior claims against the property, such as liens, and that the seller has the legal right to sell the title.
Special Warranty Deeds
Special warranty deeds are less comprehensive than general warranty deeds, which typically guarantee only that there are no outstanding issues related to the period during which the seller owned the property. They generally don’t extend back any further.
Bargain and Sale Deeds
Bargain and sale deeds essentially involve selling the property as is, without offering any warranty of title from the party selling it. Bargain and sale deeds are generally reserved for tax sales and foreclosures.
Quitclaims
Quitclaims are the most straightforward deeds, offering the fewest protections. The seller provides no warranties, but the quitclaim does terminate or quit their interest in the property. Quitclaims are generally used for the transfer of property when it isn’t sold, such as when it’s gifted between family members.
It’s Time to Consult an Experienced Real Estate Attorney
Our skilled real estate lawyers in Lancaster, Pennsylvania, will do everything possible to ensure that your real estate transaction proceeds smoothly and safeguards your rights throughout the process. Learn more by contacting us online or calling (717) 232-5000 today.