Our real estate lawyers guide Indiana buyers and sellers through every document to help them close with confidence
Buying or selling a home is a major transaction, especially if you haven’t been through that process in a while (or ever!). As such, it’s important to know what you’re getting into. There are a lot of legal documents that come into play in even a simple purchase, and every one of them has significant implications. Here’s what to expect when you’re buying or selling a house.
Offers and counteroffers
If you’re buying a house, the first step in actually making a purchase is submitting an offer letter. An offer includes the price you are willing to pay, as well as the name of the seller, the address of the property, your legal name, and the names of anyone else purchasing the property (such as a spouse or partner). It may also include contingencies and a proposed closing date.
A seller may accept a buyer’s offer, make a counteroffer, or reject the offer and invite the buyer to make a new offer. Either way, an offer or counteroffer becomes legally binding if accepted by the other party, so don’t submit one unless you’re willing to commit.
The purchase and sale agreement
The purchase and sale (P&S), also known as a purchase agreement or simply a real estate contract, is the central document in any real estate transaction. The purchase agreement lays out the overall structure of the deal, including:
- The purchase price, as well as the down payment and earnest money.
- The closing date (though in most cases that’s more of a guideline).
- Any contingencies, such as financing or home inspection.
Again, a purchase agreement is a legally binding contract; once it’s signed by both parties, it’s enforceable. There is no built-in grace period to walk away (unless one is specified in the contract itself).
Disclosures
Indiana law requires sellers to make certain disclosures about the condition of the property, including material defects with the property and its major systems, such as plumbing or electrical systems. The seller must fill out a form called the Seller’s Residential Real Estate Sales Disclosure Form.
As a seller, you need to carefully and truthfully complete the disclosure form to avoid legal liability. As a buyer, you need to review the form, and also remember what it doesn’t include—not everything is on the form, and sellers aren’t required to disclose issues they don’t know about. That’s why it’s important to ask follow-up questions and get a home inspection before closing on the property.
Title search and title insurance
Performing a title search is a critical step in the process because it confirms that there are no legal issues with the title to the property, such as liens, claims, covenants, and easements. Purchasing title insurance is likewise important because it protects the buyer from any issues with the title that might become known after the purchase.
The deed
The deed is the document that actually confers ownership of a piece of real estate. In Indiana, the seller must sign the deed and have it notarized, and the buyer must formally accept the property. The deed is then recorded in the county’s register of deeds to make a public record of who owns the property.
An experienced real estate attorney can protect your rights
The documents listed above are central to virtually all real estate transactions, but there may be others, depending on the location, type of property, type of financing, and so on. A mistake on any of these documents can have significant consequences, especially with the amount of money at issue in a real estate purchase. That’s why, although you are not legally required to have a real estate attorney, it’s always in your interest to do so.
If you are planning to buy or sell a home anywhere in the Indianapolis area, our experienced real estate attorney, Janet Davis Hocker, can help. Give us a call or contact us online today.
"They were careful to explain my options. They were also good at communicating with me in a timely manner. It was a positive experience with legal help in my time of need. I would use Hocker Law again." – L.W., ⭐⭐⭐⭐⭐