Real Estate Laws You Need to Know Before Buying a Home

Buying real estate is a dream that every American wants to fulfill, but it is also one of the most expensive transactions people ever make. Purchasing real estate involves a plethora of legal requirements that you need to be aware of before the transaction.

It may seem overwhelming, but we are here to simplify the process. These steps will help you become a homeowner without stress and anxiety.

Get Your Mortgage Pre Approved

Financing is one of the essential things required before you even think about buying real estate. That is why you need to get preapproved for a mortgage. Sellers are more likely to accept your offer because they can have the assurance that you have been approved for the required financing.

Do not be overwhelmed by the preapproval process, as it is much simpler than people think. This process requires a few details: personal information, credit report, and proof of assets and income. Apart from that, you will need to determine the amount you are willing to use towards a cash-down payment. After this procedure, you will get a preapproval letter from your lender stating the specific amount and time for which you are pre-approved.

Although one should know that obtaining pre-approval does not automatically guarantee a loan, it merely indicates that you are qualified for the loan and can be a potential candidate. Your lender will determine whether or not you are formally approved for the loan after they have gone through the necessary documents.

Put In Your Purchase Offer

What should you do next? Well, the next step is to search for the house of your dreams. The search might take some time, but once you have selected your ideal abode, you must make a purchase offer. For this step, you will need to get in touch with your real estate agent. They shall help you complete the required documentation to put in the purchase offer, i.e., an offer to buy the home.

Now, how much you actually end up offering is variable. If the property is in a place with intense competition, you might want to consider offering higher. If not, always try to offer the seller less than their demands.

When you receive a purchase offer, you must consult an expert in real estate law to oversee and provide you with any legal advice if necessary and ensure that it includes all the essential components.

Negotiate The Offer And Sign The Purchase Agreement

When you present your offer, the seller might not accept it immediately and may counter or even reject it. Have an attorney present with you during this procedure, as sellers might change the conditions of the contract according to their will. Having an attorney oversee the revision will ensure that you do not sign into something you are unwilling to agree upon.

The most crucial document between both parties is the purchase agreement. Both parties, the buyer and the seller, must agree upon and accept the purchase agreement before signing it. The purchase agreement is not merely about the purchase price but also involves the following:

Earnest Money

Earnest money refers to the amount of money cash buyers commit to completing the sale. The earnest money is generally a tiny portion of the purchase price, amounting to about 1-2% of the price. This earnest money might entice the seller, especially in competitive markets. The more earnest money you can offer, the more appealing it is.


Contingencies protect the buyer and the seller during multiple scenarios. If either party decides to back out if the deal goes sour. Contingencies permit the buyer to cancel the contract without losing the earnest money deposit.

Settlement Date

The closing date is crucial to the sale. Before the closing date, all the appraisals and inspections must be complete. By the time of the settlement date, home insurance and the new mortgage should be in place.

Date of Possession

If you are buying real estate, you must know the difference between the closing date and the possession date. The date of possession is when you can officially move into your new home.

Approval of Mortgage

Contact your mortgage lender as soon as your offer goes through and is accepted by the seller. Contact the mortgage lender with all the details to begin the approval process. You might be needed to submit more information and additional documentation.

Complete your mortgage paperwork as soon as possible and turn in the documents promptly.

Home Inspection

There will be a home inspection before the contract can be considered binding, and almost every contract you come across will include this. Your real estate attorney should ideally include this clause to give you another layer of protection. The buyer can then get a home inspector to check if everything is up to code or if there are problems that may arise in the future.

If any problems are identified with the estate, ensure that your real estate attorney contacts the seller to repair them before the sale goes through. You can lowball your offer if the seller refuses to go forward with repairs. This procedure of inspection is especially needed when you are purchasing older properties.

Meeting Contingencies

Post home inspection, the contract is considered final. There are other contingencies that one needs to fulfill. Selling your current home is regarded as a crucial one. Especially if you are a previous homeowner, that can be one of the contingencies in the contract.

Title Insurance

Purchasing title insurance is the next step in this process. You will also need to provide it to the mortgage company. But what does it do? Often title searches are needed to assess if the buyer has any outstanding mortgages, uplaid liens, leases, etc. Title insurance also is used to guarantee that the ownership rights or the title that the homeowner receives is valid and free from any sort of claims.

Mortgage Closing

When the buyer has provided the mortgage lender with all the necessary documentation and has met all the contingencies, it is time for your settlement or closing. During this period, you will close on your home and the mortgage.

It would help if you had your real estate attorney with you during the closing as you will be signing legal documentation and reviewing the financial details.


During the closing, you will get the deed of your house, which is proof of your legal ownership. The deed would contain a detailed description of the property, deed restrictions, and property lines.

(Learn more about the difference between deed and title in Florida)


Your purchase cannot be called complete until your paperwork is filed. You will need to file your paperwork for your new home with the county. Your real estate attorney should be able to guide you through this process.

Find The Best Real Estate Attorney In Fort Myers

Being a new homeowner is stressful, but a reliable real estate attorney can make your worries disappear. If you feel perplexed by the never-ending legal documentation and paperwork, you need to find a real estate lawyer specializing in estate law. This is why you need support from Hale Law Services. Get a qualified, board-certified real estate attorney to ensure your experience goes smoothly. Our skilled real estate attorneys can aid you with all legal compliances until the point of closing. We are well versed in state law and have the experience to deal with various legal issues. To learn more, contact 239-931-6767 or mail us at

By |2022-11-08T01:23:42-05:00June 14th, 2022|Real Estate Law|0 Comments

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