Legal Pitfalls of Arranging a Mortgage
Take a deep breath. If you’re reading this, you’re thinking about getting a mortgage, and we’re going to try to walk you through it.
Of all the financial commitments that a person can undertake, getting a mortgage is probably the biggest. It will certainly have the greatest impact on your life if you make a mistake, so rule number one is to take plenty of time and not rush into it. Talk to your mortgage broker, banker, or real estate agent about details. You can also hire a solicitor, who can review your contract, watch out for unusual or potentially harmful clauses, and explain the details to you.
It may seem like a lot of work, but take time to read the contract. You should of course do this on principle for any contract you sign, but with a mortgage it’s important to understand “the fine print”. An unscrupulous lender, broker, real estate agent or seller might be putting pressure on you to make a decision fast; if so, you’re better off calling it quite right there. This transaction involves a house and a bank; neither one of them are going to get up and run away tomorrow. The real world of finance and real estate moves at a sedate pace. Perhaps you’d like to know more about Jumbo Mortgages.
The legal process of transferring ownership of the property between parties, known as conveyance, is very specific and complicated. Either you will be handling the process through a series of professionals, or a homeowner can choose to do the process individually using a do-it-yourself kit. Remember that you get what you pay for with these kits.
There may be a type of fee to the state, called a “conveyance duty” to pay, although you can sometimes qualify for an exemption if you are a first-time home buyer. The property title, when held by a party, will establish proof of ownership. Depending on what type of title it is, it may require the buyer to show clear title for every previous owner. In some cases, the property title might be assumed to be joint tenancy; for instance if the house is owned by a married couple. In this case, remember that both parties legally own half of the property, and one party may contest a decision made by the other party without their consent.
By all means, you should always enact a thorough inspection by a licensed inspector. Have the report in writing; it will be your “Rosetta stone” through the proceedings, because it nails down the exact value, state, condition, and circumstances of the real property you are conveying. Without this, you have no way to prove in court what the property is worth, should you be in that unfortunate position.
There, that wasn’t so hard, was it?
Copyright 2007 www.loans-only.com
August 28th, 2007 at 12:41 am
[…] See this article if you want to know the legal pitfalls of arranging a mortgage. […]
August 29th, 2007 at 7:42 pm
[…] One solution is equity release. Equity release allows the homeowner to stay in their current home. Prior to an agreement being reached conditions have to be met. Firstly, normally the person will have to be over a minimum age. Learn about the legal pitfalls about arranging a mortgage before jumping in. […]