Contract Drafting Attorneys in Detroit, Michigan
According to RealtyTrac statistics available as of April 2022, there were 115,255 homes listed for sale in Michigan, with a median estimated value of $223,753.
Zillow reports that home prices in Detroit are up 28.5 percent from March 2021 to March 2022. In short, the real estate market has been booming.
While many residents are looking to take advantage of favorable interest rates before the Federal Reserve begins its anti-inflationary push, it still pays to exercise due caution in buying or selling a property.
Unlike many other states, Michigan does not require that an attorney be involved for either buyer or seller, and thus many people sign agreements and purchase contracts that can come back to bite them with unintended or unforeseen consequences. When signing, the reams of paper come flying fast and furious, and few take the time to read the fine print.
That’s why it’s always better to have an attorney draft the contract for you and explain every clause and phrase in the document. It is vital to rely on our real estate attorneys at the Detroit Legal Group PLLC to help you in every step of the transaction to steer clear of any unintended consequences in the future.
We also proudly serve clients in Dearborn, Southfield, and Warren, Michigan.
Why an Attorney-Drafted
Real Estate Contract?
If you’re buying or selling a property through the help of real estate agents, most likely the necessary purchase documents will be some form of fill-in-the-blanks, whether provided by a realtors’ association or another professional group. Even the state of Michigan has a downloadable form.
The problem with these forms is that they are quite general and can’t anticipate every twist and turn in a real estate transaction, especially when it comes to contingencies and other special provisions.
That’s why it’s always better to have an attorney not only assist you with the transaction but draft a real estate contract to close the deal. Both buyer and seller can then be assured that their interests are being fully honored and that they understand all the terms and conditions of the agreement.
What Constitutes a Real Estate Contract?
A typical real estate contract must contain several elements to be considered valid and enforceable. These elements are:
Property Details: Not only lot and property information but also whether there are any easements or encumbrances that can affect the new owner.
Buyer and Seller Information: Names, addresses, and contact information.
Purchase Price: This includes not only the final agreed-upon price but also earnest money, down payment, escrow, financing, and other pertinent requirements and information.
Date of Closing and Closing Costs: Spells out who is responsible for closing costs and how much those costs will be.
Property Taxes: Details the property taxes for which the new owner will be responsible.
Excluded Items: Anything that will not transfer to the new owner, whether appliances, fixtures, sheds, or so on.
Disclosures: The seller must disclose anything that will affect the new owner’s usage – the presence of lead paint, termite damage, sewage or electrical issues, and so on.
Contingencies: The buyer and seller must be aware of and agree to any contingencies placed on the transaction, which could include a final property inspection by the buyer, a title search to make sure there are no liens or other problems, and even a financing contingency that can protect the buyer.
The final part is to have both buyer and seller sign the contract. Sometimes, there will be an “exchange of contracts,” meaning that both buyer and seller will sign two sets of the same contract, so there will be two copies, one for each party.
Pitfalls to Avoid
The biggest pitfall to avoid is thinking that everything is fine once you’ve agreed on the price, earnest money, down payment, and the closing date. Real estate agents are creatures of habit, and once they get you to bite into what they lay before you, you can never be sure if you’re protected or if something unexpected might pop up.
If you ask questions about the process and the answer comes back that “This is the way we always do things,” then that’s a warning sign not to be ignored. Remember, everything in a real estate transaction is negotiable, including commissions and contingencies.
Contract Drafting Attorneys Serving
Don’t leave anything to chance when entering a real estate transaction, whether you’re the buyer or the seller. Involve an experienced real estate attorney to ensure all terms and safeguards are in place, so you don’t get locked into something that might end up costing you more or losing more than you anticipated. In Detroit, Michigan, and the surrounding communities of Dearborn, Southfield, and Warren, rely on our real estate attorneys at the Detroit Legal Group PLLC. We’ll work with you throughout the process and draft a real estate concrete that protects your rights and interests and secures the deal you’re looking for.