The professional approach is to then contact a real estate agent to make a list of properties to suit the purchasers needs. In the state of Massachusetts, real estate agents are in a fiduciary relationship with the seller. However, a purchaser can contact a buyers broker who will act in the interests of the purchaser alone. The fees of the buyers broker will have to be paid only by the purchaser.
Once the purchaser locates an ideal home, a purchase and sale agreement stating the offer of the purchaser is made. The offer becomes binding once the purchase and sale agreement is agreed to and signed by the parties. The sale and purchase agreement should be accompanied by an amount of 1% of the agreed price. The agreement should contain certain contingent conditions like seeking various inspections of the property. The state of Massachusetts does not require seller property disclosure and most municipalities do not require inspections thus the inspection contingencies should be included in the agreement in the interest of the purchaser when purchasing a home. Pest, lead paint and septic drainage inspections will benefit the wise purchaser.
The next step is to do a title search by engaging an attorney a real estate title company or a title trust company. These companies are members of the American Land Title Association or the Massachusetts Real Estate Bar Association. When the purchaser applies for a loan to a mortgage company or other financial institution, the lenders require adequate security of a clear and marketable title. The title search will include tracing easements and liens. The State of Massachusetts recognizes implied easements arising out of necessity or beneficial interest. The title search will also include searches in bankruptcy and family courts for liens arising out of mortgage, tax or child support dues. The purchaser should take out an insurance policy on title to cover undiscovered title defects.
When the title is cleared, the purchaser signs a promissory note with the financial institution which constitutes the IOU. . Mortgage insurance is required if the purchaser has invested less than 20% of the loan. The insurance is dropped when the purchaser repays 80% of the equity.
The purchaser is then required to pay 10% of the agreed consideration as earnest money to purchase the home. The final deed is drawn up and approved by the parties and the purchaser will have to pay several incidental expense such as search fees, broker's a fees and survey fees. These incidental payments should be about 2 to 3% of the mortgage amount.
On the day of closure the purchaser will be asked to bring required documents by the lenders attorney and a home owners insurance with a paid premium receipt for one year to show that the property is adequately insured before the deed is delivered.
The process of the purchase of a home in the State of Missouri begins with the purchaser approaching a Realtor. The Realtor is the agent of sellers and under the laws of the State of Missouri have specific and fiduciary duties towards the seller. The Realtor has a database of several homes put up for sale and can cater to the pricing level that purchasers need within the amount of loan the purchaser can raise. A realtor who is a member of the NAR ( The National Association Of Realtors) has access to the MLS or the multi listing service offered by the Association. This gives the purchaser the advantage of choosing the best housing option within budget and within preference.
Once a home is located the purchaser is required to give an offer in the form of a sale and purchase agreement. The sale and purchase agreement will include the price offered, the inspections required , the deadlines for the completion of each stage of the purchase transaction and the amount of money the purchaser can raise by loan. The seller is required under the laws of the State of Missouri to disclose potential home defects to the buyer. Once the seller and the purchaser sign the agreement it becomes a binding contract .
The purchaser then employs certified inspectors to carry out inspections for structural defects, pest control, lead paint usage, radiation and other hazards. The inspection certificate will be shown by the purchaser to the lender to convince the lender of the strength of the building.
The purchaser hires an attorney, a real estate title company or a title trust company to conduct a title search to clear or cure any encumbrances on the property. The American Land Title Association has a list of title search professionals operating in the State of Missouri. Title searches in courts and public records will reveal any implied easement of necessity which is allowable under the laws of the State of Missouri or liens arising out of unpaid mortgages, unpaid structural workers and unpaid taxes. The purchaser should also buy a title insurance which will safeguard the property from future or invisible title claims.
Once the title of the property is cleared or cured by the seller by releasing the liens, the purchaser can shop for a loan that is customizable to needs of the purchaser. If the purchaser engages a credit rating company that helps the purchaser obtain documentation to pre qualify and pre approve the purchasers credit rating it will be easier for the purchaser to shop for the loan on the basis of the documentation.
On raising the loan the purchaser can make a down payment. When the lender is satisfied that all structural and title impediments are cleared the purchase can be closed. The purchaser should show proof of paying a year's premium on a home owners insurance at the closure and bring any documents that the lender may require. The passage of title from seller to buyer is recorded at the closure and the purchaser completes the purchase of a home in the State of Missouri.
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