COMMUNITY & PEOPLE
Buying a
HOME BY WILLIAM L. COLBERT
F
or most people, buying a home is the biggest single investment of their life. Thus, it is extremely important that buyers use great caution in the home buying process. One of the first documents in the process is the purchase and sale agreement or contract. Few people realize that this document represents the most important step in purchasing a home; the details of this agreement determine the terms of the purchase. Unfavorable provisions in the contract may not be corrected or avoided later in the transaction, so a contract should be read carefully before signing.
If the home being purchased is still under construction or has been completed recently, special care is required to make sure that all building costs have been paid by the sellers and that the buyer is fully protected as to the provisions of the Florida construction lien law. This also may apply when repairs on a house 8 MY SAN FORD MAGA ZI N E | SU M M E R 2020
have been made recently or building materials were recently delivered. Failure to protect against construction liens can result in the property being subject to liens even though the full contract price was paid. Also, verify that the county or municipality has issued a certificate of occupancy to ensure that the home has met all statutory requirements and may be lawfully occupied. Closing a real estate sale is a technical and complex procedure. The first and most important phase is the careful drafting of closing documents to carry out the actual intent of the parties. It is vital to ensure that the parties satisfy all technical title requirements and that the purchase is made in compliance with the truth in lending acts as well as other state and federal laws. Finally, the signing, delivering and recording of paperwork should complete the process.
Buying a home is a complex journey, and professional advice should be sought. Realtors, lenders, attorneys, surveyors, and title agents all have an important role to play. n
Mr. Colbert is a lifelong resident of the City of Sanford. He is an attorney and is the managing partner of the Stenstrom Law Firm. He has represented both private and public clients, including the City of Sanford for many years.
ADOBE STOCK (TOP); COURTESY WILLIAM COLBERT (BOTTOM)
A real estate title is a right to partial or whole ownership to land and improvements upon the property. A marketable title is free from reasonable doubt. When purchasing a home, marketable title should always be required and an owner’s policy of title insurance should always be obtained. However, like any insurance policy, the coverage is no less or greater than as stated in the policy. Another type of policy, mortgagee’s or lender’s title insurance protects only the holder of the mortgage and not the owner. Owner’s title insurance coverage should not be forgone because the lender has its own loan policy. In fact, obtaining both the owner’s and lender’s title policies at the same time is not much more expensive than obtaining a single policy. There is only a one-time charge for an owner’s policy, and its protection continues long after the property is sold. The policy should be retained indefinitely.
