The real estate sales process can be confusing for those without the abundant experience of a real estate attorney. There are a lot of terms that don’t come up in day-to-day life like escrow, lien, and easement. Documents of great importance seem to be required for every step along the way. Those entering the process might think it to be fairly straightforward—find a property you like, make an offer and get it accepted, then move in.However, that is not often the case. There are plenty of circumstances that can arise that add a few more steps to the process. And throughout this process, everyone has their eyes on the final step— closing.
It feels like there’s insurance for everything these days. Title Insurance may seem like just another piece of legal minutia, but it’s actually a crucial part of buying property that can protect you from massive loss.
Sometimes clients looking to cut costs on their next real estate closing have asked about the possibility of a "cash for deed." What does that mean, what are the risks, and how can this strategy save you money on your upcoming closing? We will try to answer these questions for you.
Here’s a question we were recently asked: “My brother — who is incarcerated — and I co-own 133 acres of land in Tennessee. I want to sell but he doesn’t. There’s no way to fairly divide the property because of the dimensions of the land, much of which is in a flood plain. What can I do? And how are the legal fees paid?”
Knowing what's expected of you at the time of closing on a property will protect you from financial surprises. Each state is allowed to determine its own taxes. Kentucky, for example, has an income tax while Tennessee does not. In the State of Tennessee, a transfer tax is collected anytime anything of value is exchanged for the transfer of real estate. It's a hefty tax that can add thousands to the final cost.
Are you having problems getting along with the co-owner of your property? Do you disagree about how the property should be used? Do you want to sell, but your partner wants to stay? If you can’t see eye to eye with your co-tenant, maybe a partition action is right for you. To begin, let’s look at two example scenarios where a partition action might be filed.