Does the seller have to disclose defects to the property?

Under Virginia law Sellers are under no obligation to disclose defects to potential buyers, which is why it is critical that every buyer have a professional home inspection, pest inspection, and title search done during the due diligence/feasibility period of the contract.  Buyers must ensure the contract allows a way out of the purchase of the home should there be any significant defects.  In addition, just prior to closing, the Buyer should do a final walk through inspection to verify that there are no new defects, to confirm that the Seller left all personal property items (e.g. window treatments; appliances) that were included in the sale, and to see if all agreed repairs have been performed.

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

What is title insurance?

Title insurance protects against the risk of the buyer’s ownership being subject to the claims of another.  A few examples of such claims are: outstanding liens against the property; delinquent property taxes from prior to closing; forged deed or release instruments; incorrect property description in the deed.   If a claim is brought against an owner over an insured risk, the owner must immediately notify the title insurance company.  The title company will step in and defend against the claim, and/or if the claim is legitimate and the owner suffers an insured loss, the title company must indemnify the owner against the loss. 

Should I buy title insurance?

Buyers should always purchase title insurance. Although percentage chances of having title issue are slim, the costs of dealing with such an issue far outweigh the one-time premium charged for title insurance.  

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

Should I have a survey done?

Attorneys will usually recommend having a survey as it is useful to know exactly where the property lines are.  A survey will also reveal if there are any encroachments over the boundary lines.  A survey of a standard residential lot currently costs $250.00 - $350.00, though large properties or acreage cost significantly more.  Oftentimes the charges for a survey can be covered by a seller’s closing cost assistance to buyers. In some instances (such as with an inside unit in a townhome complex) the need for a survey is mitigated. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

When will I get my deed showing proof of ownership?

Typically the deed is recorded by the settlement attorney the business day following closing.  The clerk of court records it in the land records of the city and then returns it to the settlement attorney.  This usually takes from three to six weeks.  The settlement attorney mails it to the buyer, along with the title insurance policy.   Beware!  There are companies that solicit homeowners with an offer to sell them an “official copy” of the recorded deed shortly after closing, at a charge of around $85.00.  It is totally unnecessary to pay for this service, as the settlement attorney will send the original deed to you as soon as it is available.  If you ever lose the original, a certified copy can be obtained from the Clerk’s Office for around $3.00.  

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

When I go to settlement, what will I need to bring?

Under the Patriot Act, it is required that you bring a government issued photo ID – usually a driver’s license.  You will also need to bring the funds the settlement attorney’s office has told you that you need to bring.  The funds must be wired to the settlement attorney’s office in advance of closing, or you may bring a cashier’s check from a local bank.  If anyone is signing by a power of attorney, the original will also be required.  That document will be kept by the settlement attorney in order to be recorded in the record books at the courthouse.  It will be returned to you after it has been recorded. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

When should I get insurance?

As soon as a contract is signed by all parties, the buyer should begin shopping for homeowner’s insurance, which will cover general hazards, such as fire, theft, and vandalism. The first year’s insurance premium will be collected at closing, so you typically do not have to pay the insurance premium prior to closing.  If the property is in a flood zone that requires flood insurance, you will need an elevation certificate prepared by a land surveyor in order for the insurance company to establish a price for the flood insurance policy. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

My spouse is military. Can I still go to closing if he/she is on deployment?

Yes. Buyers can have the loan documents signed for them by giving someone a specific power of attorney. The buyer’s lender should be consulted to determine if they require a specific form and to approve the power of attorney before it is signed.  Sellers can likewise close by power of attorney.  The settlement attorney can prepare the power of attorney if needed.  The original power of attorney MUST be brought to closing. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

How much time should I allow for my signing appointment?

Loan closings for a buyer usually take an hour to complete.  That is the time required to sign all of the lender’s documentation and have closing attorney explain the import of each one, including, in particular, the settlement statement.  The purchase of real estate is a major transaction, and settlement is the last chance to raise questions; rushing through is ill-advised.  The seller may or may not be at the buyer’s settlement.  In any event, the signing of the seller’s documents should not take longer than 30 minutes. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

When do I get the keys to the property? I am buying a condo. How do I get the key to my mailbox?

The seller should deliver all keys and garage door openers to the settlement agent at the time a signed deed to the property is delivered.  The buyer gets the keys at the end of the closing, after all documents are signed and all monies have been paid.      

Usually condos do not have individual door delivery by the Post Office, but have a cluster of mailboxes set up for the neighborhood.  The seller’s mailbox key is turned back to the nearest Post Office (not to the buyer), and the buyer’s mailbox key is obtained at the same Post Office, after closing.  The Post Office will re-key the box so that the seller’s key no longer works.   To get the key from the Post Office you will need to have a copy of your settlement statement and money for a deposit to get the key.

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

How soon do I know how much money I will need to pay at closing and can I use a personal check for my closing costs?

If you are getting a loan, federal guidelines require your lender to give you an estimate within three days of your loan application.  The exact final figure can usually be given the day before settlement by your closing attorney, though in some instances it might not be available until the actual day of settlement.  If you are not getting a loan, the figure should be available a few days before settlement (or “closing”).

All funds at closing must be paid with certified funds or by wire transfer. Occasionally, such as when a last minute change is made to settlement statement, an exception will be made for amounts less than $100.00.

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

Who sets the date for settlement?

Usually the settlement date and time is set by mutual agreement once the loan documents are made available by the lender to the closing attorney.  The date cannot be before the buyer has made a final walk through of the property.  Usually the buyer’s real estate agent initiates the scheduling discussion to see that all parties agree. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

How Important Is The Contract To Sell Or Purchase Real Estate?

No document is more important than the contract.  It governs the whole transaction.  Anything not stated in the contract is, for practical purposes, not part of the deal.  Under law you are entitled to the benefit of your bargain (as written in the contract).  If you want something more, you have to get the other party to agree.  If you want something deleted, you need to get the other party to agree.  You should assume that no contract obligation survives settlement unless explicitly stated so in the contract. 

The answers given above have been prepared by the law firm of Jones & Walker, P.C. of Virginia Beach as general guidelines to common questions.  These answers do not constitute specific legal advice.  For a fuller explanation of many aspects of real estate sales and purchases, visit Jones & Walker’s website: www.jonesandwalker.com. 

Top 5 things that can go wrong with closing?

Here we will count down the top 5 things than can go wrong with closing.

5. Walkthrough – you go to do your walkthrough before closing to make sure that everything is as it was when you signed the purchase agreement and any items that you asked to be repaired have been repaired. You get there and find out the stove doesn’t work, the seller took the refrigerator that they agreed to sell and none of the repairs we done. This will definitely hold up closing trying to get all of this sorted out. Money will need to be placed in escrow to cover any issues that still need to be fixed and deadlines will have to be extended.

4. Title Search – make sure that the title search has been completed with plenty of time to fix any issues that may arise. This is where your closing attorney has someone go through and make sure there are no defects on the title that would hold up the property from being sold.  If the title search was done at the last minute and there are issues, these sometimes take a while to fix and will hold up closing.

3. Wire – the wire needs to arrive within a certain window of time for closing. If for some reason your lender has an issue with the wire, this can hold up closing or cause both parties to re-close. Double check with your lender and closing attorney to make sure all parties have the correct wire information and timelines.

2. Fees – make sure you get a copy of your HUD in advance so you can look over all fees and ask questions before closing. Your lender and  closing attorney will have fees that will be charged on the HUD. Also, there will be charges from the city, insurance, surveys, and transaction fees, among other things that are charged on the HUD.  You don’t want to go to the closing table and have a surprise fee on there that may hold up closing.

1. Lender Package not ready – one of the most common things that can bump a closing is the lender package not being ready. When the loan process comes to an end, there are a lot of loose ends that have to be met and this can sometimes cause delay. You may be scheduled to close at 11am, but your package isn’t ready until 3pm from the lender and the closing attorney already has closings booked for the rest of the day. This may bump you to the next day.

Our agents can help point you in the right direction to make sure that you have a lender and closing attorney that are working for you!

Top 5 problems with new construction

Here we will count down the top 5 problems with new construction.

5. Leaky Windows – If windows are not hung properly, it can lead to leaks, fogging and drafts. Installing windows is a multistep process and should be done correctly without cutting corners. They have to have proper flashing and insulation installed to make them function correctly and be energy efficient. The last thing you want with a new home, are windows that are improperly installed and costing you a high energy bill.

4. Roof Leaks – One of the most common problems in homes that are built too fast is a leaky roof. There are several things that can cause problems with poorly installed roofs. The pitch of the roof, waterproofing materials and flashing are a few of the items that have to be done just right to provide proper drainage and weather resistance to keep you from having buckets placed all over your new home.

3. Cracking foundations – Another problem in homes that are constructed too quickly is cracking foundations. When building a house, the ground and soil have to have tests done to make sure they will be able to hold the home that is going to be built. If proper soil and ground tests are not completed, a home could be built on a foundation that is not able to support it. Make sure the proper tests are completed so that you won’t have to deal with this costly problem.

2. Plumbing – plumbing issues are a major concern in new construction. There are a ton of issues that can arise if plumbing is not done correctly. The hot and cold water lines can be crossed, toilets can overflow due to incorrect installation, tile leaks into the walls where tiles are not sealed properly and water gets behind them. Some of these problems are not seen for some time because they are hidden and when you find them, they are a mess (as well as expensive) to fix. These are just a few of the problems that can arise when plumbing is done incorrectly.

1. Misconception of what you are ACTUALLY getting – You walk into the model home after seeing a sign that says, homes starting in the low $200K. Great, you think! That is in my budget AND I can get a brand new home. You walk in the model and fall in LOVE! You’ve signed your contract and you start to pick out your floors – Wait, the floors in the model were an upgrade and they are going to cost HOW MUCH?? The counters that you saw were an upgrade too and they cost MORE!!! The next thing you know, your $200K house is not $275K! Make sure you know what is standard in the model and what is an upgrade BEFORE you agree to the price.  

Our buyer’s agents are well trained and very knowledgeable and will be able to help walk you through this process seamlessly. 

What are the downsides to buying a rehabbed home?

You’ve been looking for homes and all need repairs, when all of the sudden, you find one that has been rehabbed! You are so excited – it looks move in ready! Hold on just one second – there may be a few things to consider. Often rehabbed homes are being sold by investors that buy the house at a low price, fix it up, and then sell it at a higher price. There are a few downsides to this to consider.

You don’t know who the contractor is that rehabbed the house. Did they do a good job on the repairs or did they just do the bare minimum to make the place “look” new using cheap materials and labor. Was only cosmetic work done or were the major systems repaired too? The other disadvantage is that you don’t have any control over the repairs. They have already been done for you. If you buy a fixer upper, then you can make sure the work is done properly and to your liking.

There are a lot of great contractors out there that rehab properties – so don’t be turned away by one. Just make sure you do your due diligence to make sure it was done to the standards that you would expect. Our buyer’s agents will help you through the process and make sure that your interests are being protected.

What are the problems with New Construction?

New Construction can be a huge blessing. You get to create the home of your dreams. You can pick out what floors you want, move rooms around to become more functional for your family and select countertops to match your taste – just to name a few of the advantages and perks. But new construction can also be a huge headache. We will touch on a few of the problems that you can try and recognize ahead of time and try to avoid.

One of the main problems with new construction is not knowing what you are getting. You drive up to a new homes site and you see a sign that says homes in the low $200,000. You think, great! Just the price I was looking for. You walk in and the house knocks you off your feet. You LOVE the hardwood floors and granite countertops, and those stainless steel appliances are just AMAZING!!! You think, I can get all of this for $200,000, where do I sign?!?! You sign your contract and get to start picking out floors, countertops, and appliances. Now you find out that those floors are an upgrade as are those counters you just had to have. And the appliances, will that will be additional as well. The next thing you know, you have added $30,000 in upgrades.

Make sure, before you sign the contract and fall in love with the house, you understand what are standard features and what are upgrades. Many of the models have been upgraded for buyer’s appeal. What you see is awesome and truly beautiful, but often it is an upgrade that will cost you more.  Make sure you take an agent with you on your first visit to the home site so they can help you understand this process. We have to remember, every home started as a new construction home and existing homes suffer from many of these same issues as well. This can lead to expensive maintenance and/or repair issues. Even though new construction homes do have some of these issues, they are often more efficient than resale homes. Homes are only as good as the builder, and there are a lot of great custom home builders out there!

 Our buyer’s agents will be able to walk you through the process and help you get a great deal!