Legal Question in Real Estate Law in California
Thank you for answereing my question on Law Guru--here is a better explanation--my daughter is not an agent or realestate broker--we sold my fathers house to a couple in Tracy they have been paying this of and now are almost done she needs to know what she needs to do next to finish the sale.She lives in San Francisco and the sale is in Tracy.Thank you
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1 Answer from Attorneys
OK, here are a few general guidelines:
1. Lawyers like to see sales of real estate handled with a touch of formality. Normally, we would expect a written and signed purchase-and-sale contract, preferably on a preprinted form published by the California Association of Realtors or the like. Useful, but not essential.
2. Real estate purchases often involve lenders. They expect the transaction to be handled in escrow, and usually require title insurance. Again, customary, but not essential.
3. Title to real estate is transferred by deed (when the parties are alive, at least). If no deed has been prepared, preparation and delivery of a deed is essential to carry out the transfer. Title and/or escrow companies usually prepare, obtain execution of, deliver and record deeds. If there is no title or escrow company in the picture, the parties to the transaction will have to prepare, etc. the deed. The deed should be signed by the grantor (seller) before a notary public, and the grantee should take the deed to the county recorder for recording as soon as possible.
4. It is critcally important that the deed be filled out accurately in all respects. Two of the most critical aspects are (1) the nature of the estate (quality of ownership) being transferred, e.g., a "fee" or a partial interest of some kind; and (2) an accurate legal description of the property being granted.
5. The buyer should probably obtain title insurance. Depending upon local practice, it may be to the parties' advantage to have a title company prepare the deeds and sell the buyer a title policy for a combined (reasonable) price. This assures accuracy of the documentation and that the buyer is getting what she's paying for.
6. If there is a written agreement, someone (a lawyer?) should make sure the deal is closing in accordance with the terms of the agreement.
7. One aspect the buyer should be concerned about is that she/he is receiving good, marketable title. If the deal is too informal and no real-estate professionals (brokers, agents, title and escrow people, lawyers, etc.) have been involved, there is an enhanced possibility of a problem with the quality of title, preparation of documents, execution of the deal, etc.
I hope this is somewhat helpful. Your description of the transaction now is a little better than in the original version, but still very brief and lacking in details.