Closing a real estate deal can be a stressful and complicated process, with many potential pitfalls that can cause the transaction to fall through. By paying attention to these warning signs, real estate agents, attorneys, and buyers can avoid costly mistakes and ensure a successful transaction.
#1. There is an estate involved.
The first red flag to watch out for is when there is an estate involved in the sale. This can be a sign of potential complications, especially if there is no will or if multiple heirs are involved. Executors may assume that they have the authority to sell the property without the consent of all the heirs, but this is rarely the case. It’s important to ensure that all parties are on board with the sale and that any necessary legal requirements have been met before proceeding.
#2. Mobile Homes
Another red flag is when the property being sold is a mobile home. Mobile homes have their own unique set of requirements and regulations that must be met before they can be sold, including obtaining the VIN number and ensuring that any outstanding liens have been paid off. Buyers looking to obtain a loan for a mobile home will also need to demonstrate that it has been permanently affixed to the property.
#3. Separated Sellers
The third red flag is when the sellers are separated or divorcing. In these situations, it’s essential to ensure that both parties are in agreement about the sale. If the separating or divorcing couple has a separation agreement that outlines how the property should be sold and divided, failure to comply with those terms can result in legal complications. For example, if one party sells the property without the other’s consent or fails to pay their share of the proceeds, it could result in a lawsuit. Failure to do so can result in legal complications that can delay or derail the transaction.
#4 The Invisible Seller
Finally, one of the most significant red flags to watch out for is when you’ve never seen the seller in person. This is especially concerning in the case of vacant lots, where scammers may attempt to impersonate the true owner and sell the property without their consent. Vacant lots are especially vulnerable, because the scammers now that the owners are rarely physically on the property. After hooking a buyer with a fraudulent sales contract, the seller will falsify the deed, notary stamp, and other documents. Agents, attorneys, and buyers should take extra precautions to verify the seller’s identity and ensure that all necessary legal requirements have been met.
While these red flags don’t necessarily mean that a real estate transaction is doomed to fail, they are important warning signs that should not be ignored. By being aware of these potential issues and taking steps to address them, real estate agents, attorneys, and buyers can help ensure a successful and stress-free closing process.
Thomas & Webber Law at the Lake
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