Understanding A Real Estate Deed

Understanding A Real Estate Deed

Real estate sale is a legal operation requiring a multitude of formal steps. The last stage of this contractual process is enshrined in the deed of sale, the real estate contract that devotes real estate sales.This legal act formalizes the conclusion of the sale. It also has a certain interest in the legal transfer of the property.

Definition of the real estate deed

A deed of real estate sale is a legal act that formalizes and consecrates the sale of a property (house, apartment, bare land …). The conclusion of the definitive sale thus requires the signing of a deed of sale at the notary’s.The latter legally devotes the transfer of the immovable property, from the property of the seller to that of the buyer. When the notary, in charge of the formalities of the sale of a good, writes his deed of sale, he must keep an original (named “the minute”) and give a copy to the future purchaser who must imperatively keep it.The bill of sale should not be confused with the pre-contracts such as the sales agreement and the promise of sale. If it is an act under private seal, for the promise to be valid it will have to be registered maximum ten days after the signature.Regarding the notary who deals in part with this sale, admittedly it is easy to understand that it is essential to appeal to him but it is not always easy to know how to find it. Ask around, word of mouth is often the safest way to the notary! By cons, when the sales record is really difficult you should think to consult the Chamber of Notaries enumerating many experienced notaries and who will guide you to a seasoned notary.

What are these “pre-contracts” for sale?

In the sales agreement, also known as the synallagmatic promise of sale since it involves two parties, the seller as well as the buyer undertake to conclude the sale in conditions that they mutually accept and at a price that they will have together.The signature of this compromise must be accompanied by the payment by the buyer of an amount between 5 and 10% of the final sale price to be made by the purchaser. This amount is called a security deposit.In the promise of sale, it is the owner who agrees alone with the buyer to sell his property at the price he has determined alone. The owner does not have the right to sell his property to another person during this promise. This is an advantage for the buyer who, without any pressure, can decide to buy the property or not.

Legal Nature of the Real Estate Deed

This is an authentic act that is in principle drawn up by a notary. The notarial act is indeed the authentic act par excellence. The sale will be regularized by a deed in case it concerns the acquisition of a principal residence.This sales contract formality gives it a certain date and a superior probative force. The notarial deed of sale does indeed faith until registration of false, mentions and clauses personally received by the notary during the drafting of the act.Without the signing of the deed of sale in the notarial form, the real estate sale suffers from a fatal flaw since it is a substantial formality. In the absence of a notarial act, the real estate sale has a formal defect which deprives it of any future legal effect.


What information does the seller have to provide for the real estate deed?

Selling a property is a complex operation. During the sales procedure, the seller must provide mandatory information that may be legal and technical in nature. Indeed, a real estate sale can be part of the legal order on many points.This information will be used by the future purchaser of his property which will be informed and thus protect.With regard to legal information, the seller must inform the buyer of the existence of easements, mortgages or other charges.Then, on a more technical level, there are first sales of property condominium. In this case, the seller must provide the area of ​​housing, according to the law and in particular the Carrez law. The maintenance book of the building must also be communicated as well as the rules of co-ownership, the state of division etc. Before selling any real estate, diagnoses must be made. Their report must be provided to the buyer who will then be warned about the possible presence of lead, asbestos, and damage to electrical installations, gas or the presence of termites. In the case where the sale relates to building land that is not a lot of subdivision, the seller must indicate if a boundary has been made and must subsequently inform on planning rules that apply to the land. In addition to the technical information mentioned above, the bill of sale must take into account the environment of the property, especially if natural risks may arise or for example if a polluting activity is in the vicinity. The deed of sale does not have to include the aid that is likely to help individuals to purchase real estate. However, becoming a homeowner can be easier with the help of the state. It is therefore essential to inform future buyers. Regarding only the purchase in the new, the loan to zero rate can be granted to modest households under means conditions. Although it does not fully finance the purchased property, it provides assistance depending on such factors as the composition of the home and the location of the dwelling.

Deed of sale and transfer of ownership

The real estate sales contract is a solemn contract. As such, it requires the fulfillment of certain formalities. These are often required on pain of nullity of the contract.In terms of real estate sales for example, there are two solemn formalities: the drafting of a preliminary contract (promise of sale or compromise of sale) and the signing of a deed of sale in notarized form. In the absence of fulfillment of these two substantial formalities, the sale is considered flawed in the form.The consequence is that the transfer of ownership cannot take place in such a case. However, it should be noted that the transfer of ownership occurs as soon as the sales agreement is signed or when the unilateral promise to sell option is lifted.The reason is that the sale is perfect from the exchange of wills of the seller and the buyer concerning the property and its transfer price. Nevertheless, the requirement of the substantial formality of the notarial act is a form of condition precedent of the legal transfer of ownership. The legal transfer thus operates from the sales agreement but is effective only from the notarial act. There may unfortunately exist some exceptional cases of non-delivery of places after the actual purchase and materialized;In which case there are remedies in case of non-delivery of the premises after the purchase.Regarding the parts of the contract, the bill of sale must indicate the details of the seller and the buyer. Concerning now the property itself, the deed of sale must mention several elements such as the address of this property, its origin, and the description of the property, its equipment and its annexes in detail as well as the existence or not a mortgage. With regard to its origin, this means more particularly that the act must imperatively detail the date of the previous deed of sale, the name of the former owner and the notarial act. Finally, the file of real estate technical diagnostics must inevitably be included. Indeed, according to the legislation, several diagnoses are obligatorily to carry out before selling a real estate. For example, asbestos diagnosis, lead, energy performance, termites, natural gas and finally the diagnosis of natural and technological risks are mandatory.

atlfairoffer

Professional Home Buyers Atlanta Blog

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