Sale of Real Estate
There are several important factors to consider in any real estate transaction, and the best approach will depend on your specific circumstances, whether you are buying, selling, or financing.
Customized Real Estate Deals
Attorney Assistance with Transaction
Real Estate Contract
Every real estate sale should include a written contract that clearly outlines the terms of the purchase and how the sale will be completed. This agreement protects both the buyer and seller and ensures everyone is on the same page.
Most home sales in Missouri involve a realtor who uses a standard contract based on the county where the property is located. However, these contracts can differ, so it’s important to review them closely to avoid costly mistakes. Pay special attention to deadlines and key terms since missing a date or misunderstanding a clause could create legal problems.
If you’re unsure about the language in the contract or need custom changes, it’s wise to consult a real estate attorney to protect your interests and ensure everything is done correctly. When it comes to commercial real estate transactions, it is essential to involve legal counsel to ensure proper protection.
Use an attorney for a customized real estate contract.
Contracts and Seller Financing Documents
When to Hire a Real Estate Attorney
In some cases, such as for sale by owner (FSBO) transactions, a realtor may not be involved, making it necessary to hire a real estate attorney to draft the contract.
Non-traditional sales have become more common due to economic conditions, requiring creative arrangements like seller financing or lease-to-own agreements. These methods each have pros and cons depending on whether you are the buyer or seller. Because both parties have different interests, it is wise for each to seek advice from their own attorney to ensure their rights are protected.
Create a carefully written sale and purchase contract outlining the real estate transaction to avoid confusion or disputes.
With a seller financed purchase of real estate, make sure the payment terms are defined and the lien is properly secured against the real estate.
Structure a standard lease agreement so that all or part of the rent can be applied toward the purchase price under an option-to-purchase agreement.
Real Estate Contracts
Use an attorney to structure your real estate sale.
In a nontraditional real estate sale transaction, attorneys can help you properly structure the documents to serve your needs.
Unconventional Real Estate Purchase
Popular Ways to Buy Property Without a Loan
One option is a contract for deed which works like an installment plan to buy property. The seller’s deed is held by a title company until the full amount is paid, while the buyer signs a quit claim deed held in escrow in case of default. Although once popular, this method led to many disputes and lawsuits, causing its decline.
Lease-purchase agreements have become the preferred alternative. They involve a rental contract where part of the rent may go toward the purchase price. Then, a separate option-to-purchase agreement outlines the terms if the buyer chooses to buy. This setup often benefits sellers by making it easier to remove a defaulting buyer, and helps buyers who need time to improve credit or save for a down payment.
Another option for structuring a real estate transaction is for the seller to provide financing directly to the buyer through a promissory note and a mortgage, also known as a deed of trust in Missouri. In this arrangement, the buyer makes payments to the seller over time rather than securing a traditional loan from a bank or mortgage company. This method can offer flexibility for both parties and may be especially helpful in situations where conventional financing is difficult to obtain.
Because these agreements are complex, working with a real estate attorney is highly recommended.
Hire our attorneys to assist in structuring your seller-financed transaction.
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