It is very important to have a legitimate transaction since buying a property is a huge investment. With this, you need to follow some steps to make it legal.
Make sure to have an agreement
This is the initial step that you need to do. A purchase agreement has to be set up because this states the information about the property you are buying. The terms, property price and the name of seller and buyer. Through the purchase agreement, it will serve as a record of the deal that you had with the seller or as a proof as the buyer of the house.
Sign the agreement
This is the next step that you need to do after agreeing to all the terms of the purchase agreement. You, as the buyer, need to sign it, together with the seller. Signing the agreement shows that you are the new owner of the property.
Prepare your transfer rights documents
These forms need to be completed for you to file with the property assessor. These documents can also be used to declare a residence exemption. All of these forms help you as the buyer to get the benefits as the new property owner.
Make sure that you draft the deed
Drafting a deed is very important and everyone who wanted to have their real estate purchase legal. This type of document transfers the legal title of the property from the seller to the buyer. Most of the time, this is held in escrow until the property is fully paid.
Finalize your title insurance
This is the last step to make your real estate purchase a legal one. You need to arrange the title insurance with the assistance of an attorney who specializes in this area. You, as the buyer, have to submit paperwork to a title agency which will make you as the official owner of the property.
Having a legal purchase of a real estate is the best way to have a clean transition of property ownership between the buyer and seller. When the above steps are followed, then it is assured that you have a legal real estate transaction. Please remember that drafting and signing a purchase agreement are the first steps in making a transaction legally recognized then preparing forms for transfer rights is the next step. Drafting the deed and arranging title insurance can be done through the assistance of real estate attorneys.