Buying, leasing or renting a piece of land is very tricky for a first time buyer. This is because of the ‘bait-and–switch’ tactics, inflating the costs of real estate properties, etc. In order to curb these illegal practices by real estate agencies the US Congress in 1974 has passed the Real Estate Settlement Procedures Act.
Apart from the dubious actions by real estate companies, there are several other legal documents that are used to transfer, lease, sell, rent properties.
A deed is a legal document containing the information for transfer between 2 persons. It’s a real estate contract. It is sub categorized into-Warranty / grant deeds:- This document states the property is free from any type of liens, mortgages and any other encumbrances, etc. This is given by the seller to the buyer.General warranty deeds:- This document too is given by the seller to the buyer. Here, the seller commits to protect the buyer in case of any claim to the property after the completion of the sale.
A land contract on the contrary is a contract between a buyer and a private seller of property. In such a scenario, the seller holds all rights to the property till full payment has been made. The laws governing land contracts change from state to state. Hence, it becomes very important to understand the scenario based on which the document had been drafted.
It is not possible to draft or comprehend a deed or a land contract by a commoner. Hence, it is always safe to approach a Philadelphia Real Estate Attorney for Philadelphia residents.