Home sales transactions are legal transactions involving the sale and purchase of a residence. This usually involves a house, but can also include other types of property, such as a condo. Home sales typically involve a straight-forward sale of a new home between a consumer and the construction developer. However, home sales transactions may involve:
- Owner-to-buyer sales (the buyer purchases the home from the previous owner)
- Sales from a bank or lending company (as in a foreclosure sale)
- Sales involving the court system (as in a judicial sale)
The laws governing home sales transactions may vary by state, and also according to the type of property being sold. Many different parties can be involved in a home sales transaction, including: buyer, seller, mortgage lender, other loan companies, property appraisers, and sometimes judicial officials.
In any home sales transaction, a legal writing is required to conduct and finalize a sale. This is usually known as a real estate contract or a home sales contract. Under the legal principle known as the statute of frauds, all sales involving real property must be in writing. That is, home sales transactions cannot be orally agreed upon, as a court would not honor such a major transaction without the use of a valid, written document.
A real estate contract will contain the various provisions related to the home sale, including descriptions of the property being sold, the final sales prices, terms of payment, and whether there are any outstanding issues with the home that need to be disclosed.
Many home sales transaction contracts are standard, but some can contain very specific provisions such as:
- Exclusive right to sell
- Specific instructions regarding additions or changes to the structure
- Non-litigation or arbitration clauses (the parties agree not to sue each other in the event of a legal dispute)
- Other specific issues that need to be addressed
Disputes over home sales transactions can often require legal intervention. In such cases, the court will usually review the existing sales contract to determine whether a violation has occurred. In some instances, the dispute can be resolved through a careful examination of the sales transaction records.
In other cases, the court may need to conduct a more thorough analysis in order to resolve a dispute. For instance, if one party is claiming that the other didn’t pay them correctly, the court may need to examine bank statements as well as the conduct of the buyer, in order to determine what actually happened.
They will also need to examine the laws in the region to determine what the remedies will be. In most cases, a damages award is sufficient to compensate for losses. In some cases, other methods may be needed, such as an eviction notice, or a forced sale of the home.
Home sales transactions are major events that need to be executed correctly in order to be legally valid. If you need assistance with a home sale, it’s in your best interests to contact a real estate lawyer immediately. Your attorney can assist you with the necessary documents to ensure that the sale goes smoothly. In the event that there’s a legal dispute over the sale, your attorney can help you file the appropriate claim in court.