What Is A Clear Title? How Does It Impact A Transaction?
A clear title means that there are no encumbrances on the property. An encumbrance can be anything from an outstanding mortgage on a property to an HOA or a condo lien for non-payment of assessment. It can also include governmental liens. In order to have a clear title to convey to another party, you need to make sure that those encumbrances don’t exist. If they do exist, then you need to make sure that they are satisfied or released. Otherwise, those encumbrances will still be there when the sale or purchase is made.
Is There Any Sort Of Grace Period For Either Party To Back Out Once A Transaction Is Complete?
If there is an agreement for the purchase of the contract, then typically there are no contingencies or grace periods for backing out. Most contracts say that the seller has to deliver the clear title. If there is an encumbrance on the title that the seller cannot clear up before the closing date, then the purchaser can typically back out of the agreement. If there is a provision that allows for inspection of the property, and upon inspection, the purchaser determines that there is a serious problem, then they can either renegotiate the price of the property or decide not to purchase it.
Once there’s been a closing and the deed and funds have been delivered, there are some rare circumstances which would allow you to back out. One such circumstance is if there is proof of fraud on the part of the buyer or seller. Generally speaking, once a deal has been closed it’s very difficult to back out. This is one reason why it is so important to have an attorney review and/or prepare all of the documents; it will protect you if the other party backs out after closing. For the purchase of a condominium unit, the purchaser has three (3) days to cancel the contract unless the Seller is the developer, then the purchaser would have fifteen (15) days to cancel the contract.
How Long Does A Typical Real Estate Transaction Take To Get Resolved?
The amount of time that it takes for a real estate transaction to get resolved varies. The first variable is having a commercial versus a residential piece of property. Commercial property transactions usually take longer than residential property transactions, but not always. It also depends on whether or not a deal is going to be a cash deal or financed. I’ve handled cash deals for residential properties whereby the entire process was completed within three days. So, it can be done very quickly, but it’s rare. On a residential piece of property, the whole transaction typically takes one to two months.
Does Your Firm Also Handle Real Estate Disputes?
Our firm handles real estate transactions and real estate disputes, while some firms handle only the former. If something goes south and a dispute arises, then you need to have somebody who can litigate on the issues. We have over 33 years of experience litigating these types of cases.
What Are The Common Types Of Real Estate Disputes That You Handle?
Disputes commonly arise when one party backs out of an agreement or fails to comply with the terms of the contract. There are many cases in which the disputes involve different interpretations of the terms of the agreement. In those cases, one party often accuses the other of non-compliance.
For more information on Clear Title In A Real Estate Transaction, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (772) 242-3600 today.
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