Insulating Against A Law Suit

Generally most of my posts are adaptable to sales in any industry. Today I am specifically addressing real estate sales. If someone practices real estate very long, they will face legal issues; especially if they sell a lot of real estate. There is a very simple explanation for it too. It’s impossible to please everyone, and especially, if you represent both the buyer and the seller. In this type situation the buyer feels like the seller took advantage of them, while the seller feels like the buyer took advantage of them. As a Realtor® who is wedged between both parties thinking the agent showed partiality to the other party in the transaction. To complicate matters worse, in a typical real estate sales transaction there are numerous entities that have specific requirements and guidelines that must be followed.

Managing Your Risks

Generally most of my posts are adaptable to sales in any industry. Today I am specifically addressing real estate sales. If someone practices real estate very long, they will face legal issues; especially if they sell a lot of real estate. There is a very simple explanation for it too. It’s impossible to please everyone, and especially, if you represent both the buyer and the seller. In this type situation the buyer feels like the seller took advantage of them, while the seller feels like the buyer took advantage of them. As a Realtor® who is wedged between both parties thinking the agent showed partiality to the other party in the transaction. To complicate matters worse, in a typical real estate sales transaction there are numerous entities that have specific requirements and guidelines that must be followed.

In most real estate sale transactions there are two separate agencies involved. 

More times than not one agency will have the listing and represent the seller while the other agency will represent the buyer. [Read more…]

Understanding Caveat Emptor

 Alabama is Different than most other States…. I can’t say for sure but based on my research, the only states that are still caveat emptor states are Virginia, Arkansas, and Alabama. When a person buys real estate in these three states, they need to fully understand it is their responsibility to make sure they know what they’re getting, that it’s in good condition and works properly. When the buyer does his due diligence to have the property inspected, their legal rights remain in place after closing should some latent structural defect appear. If a buyer elects not to have the proper inspection done, closes on the transaction and then a latent structural defect appears and the buyer sues for damages; numerous Supreme Court cases have ruled in favor of the seller and stated caveat emptor; the buyer is responsibility to inspect the property prior to purchase.

BUYER BEWARE

This is a topic I try to talk about in every class I teach because it is the most important and the least understood law. I intentionally try to scare real estate agents to get them to understand the importance of the law and the effects it has on people buying real estate in Alabama. Today I will tell you how to see the law as it is written, disclose the other states that have the same law, and explain the dangers and remedies associated with caveat emptor.

Caveat Emptor is the law in Alabama…..

The Alabama Supreme Court has held caveat emptor to be the law in a consistent line of cases. Everyone should be on notice that there is no warranty which comes with the sale of a used home.

Real estate agents were taught when completing their educational requirements to get their license that caveat emptor is a Latin [Read more…]

The Process for Listing your Home for Sale

Cluttered -vs- Appealing

Selling your home is a very simple process isn’t? You simple contact a real estate agent, tell them what you want for your home and they list it. Correct? No it’s not quite that simple even though you won’t have any trouble finding a Realtor® to list it for you. Buying and selling real estate is one of the largest financial decisions most people make during their life-time. Both are very legalistic processes.  Every action we take is based on own personal decision that we make which have consequences. Those consequences can be either good or bad. Since selling a home could affect you financially for years to come, we need to make sure all our decisions provide favorable consequences.  A few weeks ago I wrote about the process of buying real estate so today I want to address the process of selling a home.

 Selecting a Realtor

First and foremost select a Realtor® who has a good reputation, is honest, trustworthy, and has integrity. Another important character you should look for is someone who doesn’t tell you what you want to hear, but instead, tells you what you need to hear. After interviewing several Realtors®, select one that you feel you can openly communicate with and hire them to represent your best financial interests. This is generally done by entering into as agency agreement for that agent/broker/agency to represent you. If you don’t thoroughly understand the relationship, ask them to explain it until you do understand. [Read more…]

The Process for Buyers to Work with Real Estate Agents

Real Agents are for Your Protection

There’s a right and wrong way to do almost everything. Buying real estate is not difficult but it can be very costly if you don’t take the right steps. I would like to share this simple process in a way that you can understand it and hopefully realize the importance of each step.

Step one is to hire a Realtor® to represent your best financial interest.

Don’t let the word “hire” scare you. Hiring someone to represent you will seldom cost you anything because the seller pays a commission to the Realtor® to professionally market their property for them. This commission is generally divided between the listing agency and the selling agency unless both sides of the transaction are performed within the same agency. Therefore let’s eliminate the thought of you having to pay to have someone represent you.

Buyer’s need to be cautious [Read more…]

What Consumer’s Need To Know

Questions Need Answering

This information is specific to what consumer’s need to know when buying or selling real estate in Alabama. Even more specifically, what consumers need to know when working with a real estate broker? Especially since Alabama is a Caveat Emptor state which places total responsibility on the buyer to do their due diligence in inspecting every aspect involved with a property prior to closing on a sale.

For years the seller has known who represents him when selling real estate but who represents the buyer? Who looks out for the buyers best financial interests? Some agents think the liability is too great when representing a buyer, largely due to the Caveat Emptor law; therefore they want to assist the buyer as a transaction broker to limit their liability. That being the case, many times, the poor buyer is left to fend for themselves without being told what they need to do prior to closing so they can protect their legal recourse options. The State of Alabama understands the precarious situation the buyer  is in when buying in Alabama so they provide

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