real estate contracts

Understanding Real Estate Contracts

Published on: August 4, 2023 | By Underwood Law Firm, P.C.

underwood-understanding-real-estate-contracts-300x300 If you’re venturing into a real estate transaction and are daunted by the contracts, you’re certainly not alone. The jargon and intricate legal parlance can often make these contracts seem more complex than they actually are. Yet, the good news is that, armed with some guidance and understanding, these contracts become much less intimidating. Our friends at Cohen and Cohen delve deeper into the realm of real estate contracts below.

Key Aspects of a Real Estate Contract

Real estate contracts can be intricate and can have significant variation based on local laws and the specific details of the transaction. Nevertheless, there are several fundamental components that most real estate contracts should encompass to be deemed valid and enforceable:

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What is the Home Equity Sales Contract Act (Civil Code section 1695)?

Published on: July 26, 2023 | By Underwood Law Firm, P.C.

underwood-home-equity-sales-300x300 Frequently, when homeowners are dealing with financial difficulties, equity purchasers may induce homeowners to sell their homes for a fraction of the price. An “equity purchaser” is anyone who acquires title to any residence in foreclosure, with some exceptions. (Cal. Civ. Code § 1695.1(a)). The California legislature believed that homeowners were losing their homes to foreclosure due to “fraud, deception, and unfair dealing by home equity purchasers.” (Cal. Civ. Code § 1695). To combat these instances of deceit, the Legislature implemented the Home Equity Sales Contract Act, found in Title 5 of the California Code of Civil Procedure, Chapter 2.5, sections 1695.1-1695.16.

The goals of the Act are to provide homeowners with the information they need to make an informed decision regarding the sale of their home to an equity purchaser, to require that sales agreements be in writing, to protect the public against deceit and financial hardship, to encourage fair dealing in the sale and purchase of homes in foreclosure, to prohibit homeowners from being misled, to restrict unfair contract terms, to give homeowners a reasonable opportunity to rescind sales to equity purchasers, and to preserve home equities for the homeowners of California. (Cal. Civ. Code § 1695).

What Does the Home Equity Sales Contract Act Restrict?

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What Disclosures is a Realtor Required to Provide in a Sale?

Published on: July 19, 2023 | By Underwood Law Firm, P.C.

underwood-disclosures-realtor-sale-300x300 Generally, the seller of a home has disclosures that they are required by law to make to any prospective buyer. This also applies to the realtor, broker, or any other agent working for the seller to sell the home. Different types of sales, however, may have varying disclosure requirements. Generally speaking, trustee’s sales, probate sales, and foreclosures sales are exempt from the California statutory disclosure requirements. All sales, however, are subject to the disclosure requirements under California common law.

General Statutory Disclosure Requirements in Real Estate Sales

If the seller is being represented by an agent in the transaction, then the agent must ask the seller about the condition of the property and fill out the form accordingly. (Civil Code § 1102.6.) The agent must also complete a reasonable and diligent visual inspection of the property and note on the disclosure form if there are any items for disclosure. (Id.) The seller or the agent can also amend any disclosures in writing. (Civil Code § 1102.9.)

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How do you enforce real estate contracts in Probate Court (Probate Code section 850)?

Published on: March 24, 2023 | By Underwood Law Firm, P.C.

3242023-300x300 Real estate contracts are an expansive field of both law and life. Sales, leases, options, and certainly wills can all fall under this broad category. Normally, once a contract is signed, parties can go to court to enforce them by filing a lawsuit. But if one of the parties has passed away, the transaction becomes more complicated.

Thankfully, the California legislature created Probate Code section 850 to remedy some of the problems inherent to these situations. No longer do separate lawsuits need to be filed. Instead, interested parties can file a special petition to get the probate court to enforce a contract concerning the subject property. For instance, a son could petition to enforce a contract with his decedent’s mother where she had promised to transfer him the house upon death.

That said, the law surrounding these petitions is still dense and unwieldy for inexperienced litigants. As such, securing the right attorney in these situations can make all the difference. At the Underwood Law Firm, our attorneys are well-versed in these matters and are ready to assist. Potential litigants should not hesitate to contact our office so that we can begin making your goals a reality.

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