{"id":28823,"date":"2021-12-30T10:20:56","date_gmt":"2021-12-30T18:20:56","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=28823"},"modified":"2022-01-03T10:21:39","modified_gmt":"2022-01-03T18:21:39","slug":"buyer-legal-documents-for-buying-a-house","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-legal-documents-for-buying-a-house\/","title":{"rendered":"What Legal Documents Will You Need for Buying a House? Here\u2019s Your List"},"content":{"rendered":"

When thinking about buying a house, most of us can probably agree that wading through legal documents<\/a> seems like the least exciting part of the process. This stack of paperwork is, however, essential. Gaining an early understanding of the legal documents for buying a house will help you avoid confusion and keep stress levels to a minimum while you\u2019re in the midst of negotiations<\/a>, inspections<\/a>, and closing<\/a>.<\/p>\n

That\u2019s why we\u2019re laying out a comprehensive list of the most important \u2014 and sometimes misunderstood \u2014 legal documents involved in the homebuying process. Here to help is top Chicago<\/a>-based real estate agent Debra Dobbs<\/a>, whose 37 years in the industry have made her a true documentation expert. We\u2019ll also hear from Richie Helali of HomeLight Home Loans<\/a> for an inside scoop on the loan-related documents for buying a house.<\/p>\n

Grab a pen and let\u2019s review!<\/p>\n

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Source: (Gabriel Rosenblut \/ Unsplash)<\/figcaption><\/figure>\n

Real estate agent contract<\/h2>\n

Your agreement with a buyer\u2019s agent<\/a> may be one of the first legal documents you\u2019ll encounter when buying a home. This is a contract you might sign \u2014 though note that they\u2019re more common in some states than others \u2014 when you\u2019ve found a great agent<\/a> whom you trust to help you find the perfect home.<\/p>\n

A buyer representation agreement solidifies the relationship between you and your agent: You\u2019re agreeing to work exclusively with them to find your new home, and they\u2019re agreeing to act in your best interests and represent you to the best of their ability.<\/p>\n

Dobbs works in Illinois, where buyer representation agreements are not common. Nonetheless, she ensures that her clients have a full understanding of what buyer agency really means.<\/p>\n

\u201cThere\u2019s a document I present to buyers that explains buyer agency in Illinois, and there\u2019s another document I show that explains dual agency<\/a>,\u201d says Dobbs.<\/p>\n

\u201cI tell buyers that we\u2019ll first have a meeting, then we\u2019ll go look at properties on an outing or two, and then I\u2019ll ask if they want to work with me exclusively.\u201d<\/p>\n

In most cases, her potential clients are happy to say yes. But for those who don\u2019t, that\u2019s okay, too!<\/p>\n

\u201cI\u2019d rather have a buyer choose a different agent than think they\u2019re going to get better service by working with a number of agents,\u201d she explains.<\/p>\n

Working with just one agent actually is to your benefit as a buyer \u2014 contract or no contract. You\u2019ll have just one point of contact, and that is a person who understands your situation, your budget, and your wants and needs for your new home. The process is simplified, and both parties benefit from the clarity.<\/p>\n

Seller\u2019s disclosure<\/h2>\n

Different states have different disclosure requirements<\/a>. Some states require sellers to fill out a seller disclosure statement documenting known repair needs or health and safety hazards in the home.<\/p>\n

This can include anything from knowledge of lead-based paint<\/a> or asbestos, to the seller\u2019s awareness of water damage in the basement, a leaky roof, or damaged plumbing<\/a>.<\/p>\n

In states where seller disclosures are not required, it\u2019s a bit of a \u201cbuyer beware\u201d situation. Though \u2014 if we\u2019re being honest \u2014 it can be difficult to prove that a seller who claims otherwise did, in fact, know<\/i> about a cockroach infestation under the main bathroom, or mold growth in the attic, or damage to the roof.<\/p>\n

This is why it\u2019s so important to have a thorough home inspection<\/a> conducted during the due diligence period of your purchase agreement.<\/p>\n

Purchase agreement<\/h2>\n

This legal document is the key to buying your new home!<\/p>\n

A purchase agreement<\/a> is the contract that your real estate agent will help you write (and they\u2019ll present it to the seller<\/a>) that includes all the terms of your purchase:<\/p>\n