Real Estate in Delaware

Buying and selling a house can be a very stressful time in an individual's life as it is a turning point and sometimes the most expensive purchase of an individual or family.

In Delaware, an attorney must be the closing-settlement agent.

In some adjacent states which follow different laws some closings are done by Title Companies and/or Notary Publics from Title Companies. This is not the case in Delaware. Choosing an attorney can be just as important as choosing a Realtor. The necessary care and attention by that attorney's office and staff will alleviate most of the stress by being available to answer questions and advise you of what you can expect during the entire step of the way.

Purchase of a home

This may seem like an easy task, but it is not like buying a new suit or dress. Most purchases of real estate encompass financing and other concerns. This is especially important if this is your first home as you do not have first hand experience behind you.

Whether or not you find your home with the aid of an experienced Real Estate Agent or you find your home through other resources, the bottom line is that you need to communicate your desire to purchase the home in such a fashion that the Seller is aware of that desire. This is usually accomplished through a Real Estate Contract. If you find your home through a Realtor, the Realtor will fill in a preprinted Contract of Sale which you should be carefully review and sign where indicated.

If you find your home on your own, you will still need to convey your desire to purchase the property with the Seller. In this case, the easiest and practical thing is to retain the services of your attorney and get your attorney involved from the onset in preparing a Contract of Sale or Agreement of Sale.

In either case, the contract will establish what you intend to pay for the property, what you intend to pay in cash [whether as a cash deal or as a deposit (earnest money)], what you intend to finance as well as what is included and excluded in that purchase. The contract will include proposed dates and contingencies of that purchase. For instance, you may have clauses that cover the following events: engineering inspections, termite inspections, mortgage contingency and sale of one's home. These contingencies are here to protect the buyer.

Assuming Buyer and Seller agree to the price and the terms of the purchase of the property, the next step is to address the actual purchase issues. Where will I get a mortgage? What are the rates and terms of the mortgages that are available to me? Who and what inspections do I want on the property? Of course, as a Buyer, you have other issues and questions going on as well as your normal life to attend to. Frequently, if you have a Realtor, the Realtor has contacts in Mortgage Companies which he/she can provide to you and you can make arrangements to review paperwork with those Mortgage Representatives. However, if you are just starting out and are without a Realtor, you can easily shop around for the best deal from the vast number of Mortgage Companies and Mortgage Brokers.

Now that one has a Contract of Sale executed, Mortgage Loan Representative working and hopefully an attorney addressing the legal ramifications to protect you which include, but is not limited to, ordering all appropriate surveys, Title Insurance and arrangements with local Tax Office and addressing any necessary repairs to be made by the Sellers just to name a few.

The next step for the Buyer is to assist in the coordinating of the documents requested to the Mortgage Company, to the Attorney and even some documentation may be necessary to process to the Realtor including any local municipality's rules such as Certificates of Occupancy ("CO") or Certificate of Smoke Detectors. This may feel like it is taking forever and it may seem like most of your free time is being spent doing what others request of you, but it is only that this is a major issue in your life and it is not like buying a car - you need to have things done right and carefully or you can be severely hurt by curtailing the process.

After what appears to be a long time as it is normal to become anxious to move in your new home, you will begin to get calls to set up a closing date. At this time, everyone that is assisting you from your mortgage and lawyer's office should be advising you of any money necessary to bring to the closing to complete your purchase. Naturally, if you are simultaneously selling your home, this may require that your sale of your property occur prior to the closing on your purchase. In any case, your attorney's office will be able to coordinate these transactions on your behalf.

Selling your home

There are various reasons people sell their residential property. Some people are buying bigger properties, others are moving to smaller quarters as the family members move out of the family home and others are moving to different locations (closer to schools, church or work). Whatever the reason is one needs to decide whether or not they are going to sell their home with a Realtor or by themselves. The main reason for any hesitation in getting a Realtor is that generally the Realtor costs (which can range from 4% to 10% of the gross sales price) and fees will come out of the Seller's pocket at closing. Selling your house through a Realtor is generally quicker and provide you with a better sales price.

In any case, you need to figure out what price you will sell your home for. This can be accomplished by paying for an official appraiser, getting a Realtor in to provide you with a complimentary market analysis (unofficial appraisal) or figuring out what you will need to obtain from the property to purchase another property and research what prices similar properties in your neighborhood are selling for which is part of any appraisal whether done by an appraiser or Realtor. If you decide to go with a Realtor, you will need to decide which Realtor will market your property the best. If you decide to try it on your own, you will have to design a marketing plan and figure out how long you will market your home yourself before resorting to a Realtor. Naturally, all of the marketing expenses when trying to sell ones property without a Realtor come out of the pockets of the Seller directly as if it was regular household expenses.

Whether you went with a Realtor or got a Buyer on your own, you still need to proceed to execute a Contract of Sale or Agreement of Sale. You also need to assure that your Buyer is able to qualify for any mortgage stated in that contract as well as assure the clauses of the contract protect your interests. If you did not get an attorney to draw up the Contract on your behalf, this may be the time to retain the services of an attorney during the attorney review period to make sure you are protected. After the attorney is on board, the attorney's office will make sure all of the necessary processes associated with the executed Contract of Sale are handled in a professional manner and be able to answer any of your questions or concerns. Additionally, during the process there will be many contingencies regarding the sale of your property that may require discussions between a Buyer's attorney or Buyer and Seller's attorney including, but not limited to, inspection reports and scheduling closing.

Refinancing your home

Whether you are refinancing your home for cash out or to avail yourself of a lower interest rate mortgage, you will still need to go through mortgage paperwork, legal documentation and a closing. This will be conducted in a truncated fashion similar to the purchase of your home. This procedure moves along rather quickly as there is no adversarial parties involved - just you, the new mortgage company, the old mortgage company which awaits payout, Title Company, and your attorney. A reputable attorney's office can provide you with the staff and expertise you need to take care of this transaction in a professional manner and be able to walk you through all of the necessary procedures. Generally, the closing is very informal even though you still may have Title Survey and Title Insurance requirements, Mortgage points and other expenses associated to the refinance.

Many mortgage companies have fine print associated to the mortgage. Being careful that the papers have the terms and conditions that you have agreed upon with your mortgage representative. As a result of the fact that most papers are not prepared in advance for your approval, at closing you will be advised that you have three (3) business days to rescind the refinance. If you need the refinancing done immediately, you may want to advise your mortgage representative that a waiver should be prepared and available for signing at the closing.

Whatever your Real Estate needs (Buying, Selling or Refinancing), everything goes along a lot smoother when you have the benefit of a professional attorney's office behind you to answer any of your questions and address all of your concerns. Do you have any concerns or questions that either our paralegals or attorneys can answer for you? Please feel free to contact our staff at (302) 653-9132 or email us today.