Tips For Buying or Selling A Home

Buying a home is likely the biggest and most complex transaction you’ll ever make. Though most home sales work out well, some do not and result in costly disputes. There are easy ways, however, to reduce the chance of problems. Here are tips.

• The Contract. When you find the home you want, you will submit a written offer. If accepted, a contract will be prepared. Although the offer will likely be on a pre-printed form with much small type, it’s vital for you to read and understand it before signing, as it covers all aspects of the purchase, including the sale price, deposit amount, inspection and repair requirements, and how disputes are resolved.

Even though the offer is on a pre-printed form, remember that all terms are still negotiable. Thus, it’s a good idea to have your lawyer review the document before you sign it. Your lawyer can make sure there are provisions to protect you, including:

• A mortgage contingency clause. This gives you the right to cancel the deal if you are unable to get a loan.

• A home inspection clause. This lets you cancel the deal if an inspection shows serious defects. If there are minor problems, make sure the contract states if the seller will fix them or you’re to get a credit and do the work yourself.

• A “sale of other home” clause. This lets you cancel the deal if you cannot sell your existing home.

• A list of items included in the sale. When you buy real property, you’re buying the land and everything attached to it. But problems can result if the seller takes things you thought belonged to you. To avoid disputes, be sure the contract states all items included in the sale. Don’t rely on oral promises from the seller, as they cannot be enforced.

• Title Insurance. “Title” is your ownership, and your right to use the property without other people saying they have rights in the property. Before you buy a home, seek legal help to make sure you’re getting clear title so you can use the home without interference and later sell it without problems. You should also buy a title insurance policy. This protects you from problems in the chain of title, such as liens or forged deeds. It pays your losses if someone makes a claim.

• Inspections. Have the home inspected by a professional. Although many states now require sellers to make full disclosure about the property, sellers are usually not liable for defects if they really were unaware of them. Also, sellers may not think some problems are serious enough to warrant disclosure.

With home sales strong in many places, you may be tempted to rush into things without paying attention to details. But if you take steps at the start — by making sure the contract has provisions to protect you in case of problems, ensuring you are getting clear title, and having the home professionally inspected — you can likely avoid future problems.
 

Why You Should Have A Will

Most people know that a will lets them determine how their property will be disposed of after death. Despite this significant benefit, approximately 3 out of 4 adults do not have a will.

Benefits Of A Will

There are many reasons why you should have a will. They include:

• Determine how your property will be distributed when you die. A will lets you name your beneficiaries — the people you want to receive your property after you die. If you have no will, your property will be distributed according to state law. The property may not be distributed the way you want.

• Name an executor. A will can also name an executor. The executor will oversee your estate’s financial affairs during the probate process. Without a will, the law designates someone to do that job. The person chosen may not be who you would want to serve in this capacity.

• Set up a trust. A will can also set up a trust, which can help protect assets and save taxes. Thus, for people with substantial assets (like a home), a will can be an important cost-saving tool.

• Name a guardian. For married couples with minor children, wills are essential. Each spouse should have a will in order to select a guardian for the children in case both parents die while the children are still minors. Although the guardian usually is chosen by the court, the court normally picks the person recommended.

• Save money for your beneficiaries.

Making Your Will

Most people have “formal wills.” These are in writing and signed by you with some special procedures. For example, a formal will must be signed by witnesses. The number of required witnesses differs by law in different states. Rules for making a formal will are technical, so you should seek a lawyer’s help in preparing one. Not following the proper procedures could invalidate the will.

When To Make Your Will

If you do not already have a will, it is best to make one as soon as possible. The only requirements for making a will are that you are at least a certain age (18 in most states) and that you are “legally competent.”

Conclusion

Wills provide tremendous estate planning benefits. They give you the peace of mind knowing your property will be distributed the way you want, the person serving as executor is your choice, and your children are raised by the person you want (if you and you spouse die while they are minors). To make sure your will is valid and enforceable, call us for help in preparing it.

How A Living Will Can Help You

The law can help you in the event you are faced with an unforeseen medical crisis. By preparing certain documents now, you can state how you want medical decisions made if you ever become unable to make them yourself, and who you want to make them. The documents are a “living will” and a “durable power of attorney for health care.” Here is a brief explanation of each.

• Living Will. This lets you state the types of life prolonging treatment you want — or do not want — if you become ill and cannot communicate your wishes.

• Durable Power of Attorney for Health Care. This lets you name someone else (such as your spouse) to make your medical decisions if you cannot make them yourself. The decisions can cover a variety of matters, including consent for hospitalization.

The worst time to try to find out a person’s wishes is during a medical crisis. So it is best to prepare these documents as soon as possible. They will help make sure you get the medical treatment you want if you are unable to communicate. For more information about them and help in preparing them, please call us.