Real estate transactions, the process in which rights in a property are transferred between parties who are comprised of a seller and a buyer, are governed by a large body of federal statutes and a conglomeration of both state statutes and common law, or law that is derived from precedent rather than statute. In other words, real estate transactions can be very complicated. The fact that one state’s real estate requirements can be vastly different from another’s only serves to confuse the issue further.
Real estate brokers are employed as the seller’s agent. The agent proceeds to obtain a buyer for the listing – the contract made between the agent and the seller is called a listing agreement – and the broker is paid a commission for the sale. Real estate brokers are licensed and regulated by highly specific state laws.
The agreement to sell made between the buyer and the property’s seller is generally governed by contract law, and the Statute of Frauds necessitates that all contracts for real property, such as real estate, be in writing.
The Federal Fair Housing Act specifically prohibits discrimination based on race, color, religion, sex, or national origin in any real estate transaction, and real estate agents are held to this standard.
It Gets Complicated
Normally, it must first be determined that the title to the property being sold is marketable, which requires that the seller have actual proof of title to the whole of the property being sold and that no undisclosed third parties own interest in the title. It is often necessary to obtain professional legal guidance to ensure that the property is indeed marketable. Often, the buyer will also need to purchase title insurance to protect against loss should the title be found invalid.
Finally, before a title can be passed from seller to buyer, a deed with an accurate description of the property being sold must be executed and recorded in an effort to finalize actual ownership of the transaction property and to serve as notice of the transfer for potential future purchasers.
Call 732-422-1000 today to schedule a case evaluation.
If you are considering buying or selling property, you should speak with an experienced New Jersey real estate transactions lawyer today. An attorney with expertise in real estate transactions will protect your rights and make sure that your transaction goes as smoothly as possible. To learn more about how an attorney can help, call Borrus, Goldin, Foley, Vignuolo, Hyman & Stahl, PC today at 732-422-1000 or contact us online.