Residential Real Estate Transactions
Common Problems During Residential Transactions
Lack of legal due diligence: In platted subdivisions, the typical home buyer doesn't need a legal due diligence analysis. The problem is the atypical parcel and the unlucky buyer who buys the one parcel in the neighborhood with a legacy oil tank, or the parcel with the utility easement that makes the parcel unbuildable, or the parcel with a pressurized oil pipe a few feet underneath the swing set. Also in platted subdivisions, buyers should read the Homeowners' or Condominium Association CC&R's and By-Laws for overly restrictive terms.
Outside of the subdivision, the host of invisible legal risks like easements, boundary issues, land use restrictions, shared water and road agreements, to name a few, are all examples of circumstances that can result in quality of living issues and over-valuation of the parcel.
Contract language: Verbal disclosures, representations, or agreements can not be relied upon and are red flags. When dealing with a non-standard contract, need to be careful of poorly crafted or missing terms, ambiguous definitions, confusing language, lack of adequate disclosure.
Calendaring mishaps: Conflicting calendar timeframes, inadequate time allotted for contingencies, missing contingencies.
Types of Residential Real Estate
Bare Land • Condos • For Sale By Owner • HOA's • Lakefront and Secondary • Mixed Residential / Commercial • Platted Subdivision • Unplatted Land