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There Are Some Key Support Considerations To Weigh Before Handling The Sale Of a Pennsylvania Residence Without a Real Estate Lawyer and/or Real Estate Broker.
A Pennsylvania real estate lawyer and/or real estate broker can support you in handling residential real estate sales related tasks, including the following:
A. Proper Written Disclosures On Proper Disclosure Forms
1. There are various Pennsylvania Residential Real Estate Seller Disclosure Law Requirements (see 68 Pa. C.S. §7304 generally and then see 68 Pa. C.S. § 7302 (b) & 68 Pa. C.S. § 3407 Specifically Concerning Condominium Units )
2. Concerning Condominiums built before 1978 , you must comply with the Federal lead related disclosure requirements of section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 ( see 42 U.S.C. 4852( d). The Residential Lead-Based Paint Hazard Reduction Act is Title X of the Housing and Community Development Act of 1992 )
3. Regarding Disclosure Forms – ( see 49 Pa. Code 35.335a as well as “Seller’s Property Disclosure Statement Form Established By Pa. Real Estate Commission, and the Environmental Protection Agency’s Pamphlet called “Protect Your Family From Lead In Your Home “ @ https://www.epa.gov/lead/protect-your-family-lead-your-home-real-estate-disclosure )
B. Responding and Negotiating
A buyer who wants to purchase a particular Pennsylvania home will make the seller a written offer, specifying the price, proposed down payment, any contingencies to closing such as receipt of a satisfactory inspection report by an inspector the buyer hires, and more. You may reject an offer outright, accept it as-is, or respond to a buyer’s offer with a counteroffer.
A legally binding contract is formed when you accept and sign a buyer’s offer (agreeing to any changes from the original offer ( see 49 Pa. C.S § 35.333 & the Pennsylvania Real Estate Commission’s Standard Agreement for the Sale of Real Estate .)
Once the real estate sales agreement is signed by both buyer and seller, the transaction will go into escrow.
C. Escrow
Escrow is the time period between signing the purchase agreement and closing on the house. An escrow agent ( a neutral third party that is typically either an attorney or a real estate broker ) must be chosen to serve as intermediary and supervise the closing process (preparing title reports, title commitment and insurance, property title/deed, processing loans, removing buyer contingencies, calculating costs, preparing the HUD-1 form , closing disclosure form, etc). The HUD-1 is a form ( See https://www.hud.gov/sites/documents/1.PDF ) that maps out all the charges and fees that a lender or broker is charging to a buyer/borrower, along with the portion of pro-rata fees as taxes, insurance and utilities that a seller may be paying as part of the transaction.
The buyer and the buyer’s lender will start processing the buyer’s loan and order a home appraisal and possibly inspections.
The Consumer Financial Protection Bureau has issued a rule entitled “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z)” (TILA-RESPA Final Rule ) effective date October 3, 2015. The purpose of this integrated “ Know Before You Owe” disclosure is to improve borrower understanding of the transaction. The creditor must give consumers a Closing Disclosure form so that they receive it at least three business days before the consumer closes on the loan. If the creditor makes certain significant changes between the time the Closing Disclosure form is given and the closing, specifically, if the creditor makes changes to the APR above 1/8 of a percent for most loans (and 1/4 of a percent for loans with irregular payments or periods), changes the loan product, or adds a prepayment penalty to the loan – the consumer must be provided a new form and an additional three business day waiting period after receipt of the new form. ( see See Burea of Consumer Financial Protection 12 CFR Parts 1024 and 1026 https://files.consumerfinance.gov/f/201311_cfpb_final-rule_integrated-mortgage-disclosures.pdf)
A final cash figure is calculated regarding what a buyer needs to bring to the closing in the form of a cashier’s check. This is based not only on a mortgage’s closing costs but factors like property taxes and utilities paid in to date by the seller.
If agreed upon, a final walk through will often be performed up to the day before closing to verify the property is in the same condition it was when the process began.
As the seller, you will need to respond to any issues that come up during escrow. If issues arise during escrow, such as the discovery of a lien on your property title, then you will need to respond promptly.
D. Closing
At the close of escrow (known as the closing or settlement), all final documents and funds will be exchanged between buyer and seller.
The buyer pays the remaining funds in their down payment to the attorney or a representative of the title company who is acting as the settlement agent via certified funds. In exchange, the seller gives the buyer a deed and other transfer documents indicating clear title to the house or condo. The seller pays off any outstanding loans on the property.
Typically, the buyers will sign the final documents at the office of the title company or real estate attorney and pick up the keys, alarm codes and instruction manuals for appliances, security system, etc. The real estate attorney or title company will then record the new deed in the buyer’ s name at the local county government office. The sale of the residence to the buyer is then complete.
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