Legal Issues to Get in Order Before Selling Your Home

Selling your home is no small event. It represents a large time and financial investment. It also involves a lot of paperwork and legal processes. Before selling a house, people usually do all kinds of work cleaning out the garage, cleaning up yard debris, and preparing the house for sale. However, few people make the same effort to settle their legal issues before selling a home. Selling a home is a large and multifaceted transaction. As a seller, it’s best to have all your ducks in a row.

Check your real estate title

Many sellers follow all the rules of selling a home only to find that the home cannot be sold due to a lien placed against it. Some people don’t realize this until they have a buyer’s offer on the table and are well into the process of selling the house. Liens can be placed against a property when the owner of the property owes a debt and is legally responsible for its payment. Whether it’s a delinquent loan or unpaid property taxes, a home typically can’t be sold until all liens are removed.

Are you the real owner?

It sounds like a silly question, but you have to legally own the house in order to sell it. Even if you don’t own your home outright (which most people don’t), you should be able to legally sell it. If you are a co-owner and for whatever reason the other party does not want to sell the house, you may have a problem. This applies specifically to couples who were once married and are now divorced. If you have ever owned joint ownership of your home and have not established the change with your county assessor/registrar, you must do so before selling your home. The title must accurately reflect the true owner.

Research Disclosure Laws

Real estate laws vary from state to state. Familiarize yourself with the laws in your state, as most states require sellers to disclose any known potential problems with the property. Some states even require the seller to complete specific inspections, such as termite or roach inspections. If you want to make sure your home meets inspection requirements, it’s best to hire a professional inspection service to avoid potential legal issues later on.

notarized documents

When completing a real estate transaction, all parties must be physically present. In some cases, you can use a notary public to sign the documents from afar, but as the deal moves toward closing, anyone involved in the transaction usually needs to be in the area.

Selling a house is not an overnight effort. A bit of homework is definitely needed on the front end. Some sellers may even choose to hire a real estate attorney to get some initial advice and review contracts and other documents. It’s best not to cut corners to align all your issues. The work you put in early will pay off in the end when you can sell your home without legal hurdles.