When it comes to buying or selling a property, always write it down!
I realize that there is routinely one thing that bothers most buyers and sellers involved in a real estate transaction: the amount of paperwork involved. On the seller’s side, you have the quotation contract, sales contract, annexes, affidavits of title, deed, etc; On the buyer’s side is the purchase agreement, attachments, loan application, promissory note, mortgage, title insurance documents, affidavits, etc. In this era of “going green,” is it really necessary to waste all this paper just to document the sale of a single home? Unfortunately, the answer is yes … and we have the old English Parliament to blame for passing a “Law for the Prevention of Fraud and Perjury” in 1677.
More commonly known as the Statute of Fraud in most jurisdictions today, this law requires that certain types of contracts be in writing and signed by the parties. One such contract that must be put in writing is a contract for the sale of an interest in the land (real estate). Not only should the contract be in writing, but it should generally contain the material terms of the agreement, such as a description of the property, the purchase price, the method of payment, and the settlement date. While there are some scenarios that allow the transfer of an interest in real estate to fall outside the Statute of Fraud, most transactions must be properly documented in writing, such as the Standard Agreement for the Sale of Real Estate that is often used by real estate agents. in the Commonwealth of Pennsylvania.
In addition to the legal requirement to put real estate transactions in writing, it is also a very necessary practice for there to be a record of all aspects of the sale to which the parties have agreed. Imagine if a seller verbally agrees to include a refrigerator, window shades, and ceiling fans in the sale of your home, but never includes it in the written contract. If the seller actually removed these items from the home, it would be much more difficult for the buyer to prove that they were part of the sale (and the negotiated sale price) if they were to engage in a battle of, “he said. seller.
While this is a fairly minor example of the type of dispute that can arise between a buyer and a seller, I can assure you that I have represented many clients who were involved in disputes on certain matters that were never put in writing. a similar situation will affect your next real estate transaction.
Whether you’re gifting a property to a family member, buying or selling your home, or modifying the terms of a previously executed sales agreement, always put the agreed-upon terms and conditions in writing … although you may end up using a few more. Sheets of paper will save a lot of money on future legal bills, and that’s always a good thing (although my fellow lawyers may agree).