Buying or renting a property may seem like an easy thing to do. After all, they are incredibly common contracts and necessary for many people to acquire housing. However, these routine transactions can quickly become complicated if disputes arise while negotiating terms or if the transaction does not proceed as planned.
Hiring experienced legal counsel can prevent disputes by clarifying contract terms and making sure parties know the risks they are committing to. Should issues arise, our lawyers can intervene to prevent escalation, advise of the next steps, and pursue legal remedies if necessary.
The Maryland real estate lawyers at the Heyman Law Firm can carefully monitor the full lifecycle of a real estate transaction and provide advice to prevent and solve any disputes that arise. Call us today at (410) 305-9287 to engage our attorneys for your real estate deal.
Common Real Estate Transactions in Maryland
Three common real estate transactions are buying, selling, and renting a property. You will have specific interests to protect and concerns to alleviate depending on which party you are in these endeavors and if the property is for residential or commercial use.
For many average people, buying a house is the largest financial risk they will take. Purchasing a house or an office space often involves coordinating with many people, such as realtors, lenders, title insurance representatives, appraisers, property surveyors, building inspectors, and pest inspectors. Numerous legal documents are also executed, including an agreement of sale, mortgage documents, a deed, and title insurance contracts.
A first-time buyer can easily become overwhelmed while dealing with many stakeholders and legal concerns, especially if they are unfamiliar with the buying process. On the other side of the deal, a seller can likewise be uncertain about what is required of them. Hiring our real estate attorneys provides you with our knowledge and experience from handling many such transactions.
Renting a property is another very common transaction that can cause significant disputes. When a property is bought or sold, the transaction lasts for a definite amount of time; however, a landlord-tenant relationship can exist for years. Reaching out to our real estate attorneys to draft or review a lease can help prevent issues and set expectations.
Disputes In Maryland Real Estate Transactions
Countless types of disputes can present themselves within a real estate transaction. Several of the more common conflicts to watch out for are listed below.
Failure to Close a Sale
It can be frustrating when the sale of a property seemingly goes smoothly until the time comes to close the deal. Bank or escrow delays, issues discovered during an inspection, and the prior owner requesting an extension to move out can all cause a failure to close the transaction according to schedule and create friction between a buyer and seller.
Inaccurate Representations and Warranties
When an agreement of sale is drafted and executed, the seller will make many representations and warranties. A representation is a fact that both parties agree upon, and a warranty is a fact that the seller promises to ensure. If such representations turn out to be inaccurate or a warranty is not upheld, the buyer will likely want the seller to remedy the situation.
For example, the seller may state that a property is free from termites, yet this proves untrue following a pest inspection. In such a case, the buyer can request that the seller pays for removing the termites and fixing any damage. Such warranties are unfavorable to the seller, and they will likely want to try to remove as many of these promises from the contract as possible. Buyers will want to add more of these guarantees. Our real estate attorneys can advise on what kinds of representations and warranties are customary. They can negotiate to create a favorable agreement of sale, no matter which party you are.
A key issue in many real estate sale contracts is the length of time these representations and warranties last. Should a warranty only last through the close of the transaction? Should it last for a definite amount of months, regardless of when closing occurs? The longer a representation or warranty lasts, the more beneficial such a clause is for a buyer. Our real estate attorneys can strategically negotiate.
Title Issues
Title issues arise when a title search reveals a previously unknown claim to the property at issue. Title issues can be caused by an improperly recorded or unrecorded deed, an error in public records, or an unknown lien, among other things. Title insurance protects a buyer from such issues, and a seller will want to ensure that title insurance is explicitly required in an agreement of sale.
Commercial Use Restrictions
Commercial buyers will likely have a specific use for the prospective property in mind, and representations regarding the ability of the property to facilitate those uses can be drafted into the agreement of sale. Such a representation provides some security (and an exit strategy) should the intended use of the property be frustrated somehow.
For example, assume that a buyer intends to use a commercial space as a bar. Both the buyer and seller draft a representation that the property is suitable for such use, given all permits and applications are in order. This representation lasts until the transaction has closed and the deed has been transferred. In the interim between the execution of the sales contract and the closing, the locality passed a law designating it as a dry township. Since the representation in the sales contract is no longer true, the buyer has some remedies available. Here, they will likely try to rescind the contract.
Since a commercial property is purchased with a specific business purpose in mind, a deal-breaking dispute can arise if such purposes are denied. Buyers should consult with our real estate attorneys to ensure their interests are protected in the sales contract.
Call Our Maryland Real Estate Attorneys Today
Do not wait until an issue has already arisen to reach out to the real estate attorneys at the Heyman Law Firm. Call us at (410) 305-9287 to discuss our representation for the entirety of your real estate transaction.