At this time, we are not accepting any new real estate clients until further notice. However, we will continue to work with our existing clients and their referrals on new real estate matters. We apologize for any inconvenience this may cause, and thank you for your understanding.
Quick Links: Deeds, Land Contracts, Leases, or Real Estate Transactions
Deeds
A deed is a legal document used to transfer ownership of real estate. To be valid, a deed needs to identify the grantor, grantee, property transferred, and the act and date of transfer. The deed also needs to be delivered, and if it will be recorded, it needs to comply with the recording statutes.
Although some people think that deeds are simple documents that a person can do themselves using forms downloaded from the internet, that really isn't true. There are different kinds of deeds used for different purposes, such as warranty deeds, quit claim deeds, and fiduciary deeds. Deeds can convey all or less than all of the rights in property, such as a fee simple interest, a life estate, or a future interest, or oil, gas, or mineral interests. The way multiple grantees take title to real estate, such as joint tenants or as tenants in common, can have significant consequences. Transfers between certain people or entities can be set up to minimize the increase in property tax that might otherwise occur due to property tax uncapping or loss of a principal residence exemption. These are only some of the many considerations a person needs to take into account when drafting a deed.
Clients who hire an attorney to help them prepare a deed can have more confidence that the deed will successfully transfer ownership of the property as intended, without creating additional problems that will take more time, effort, and money to fix in the future. If you have real estate that you would like to transfer by deed, let's talk. I can draft the deeds and other documents you'll need, so you can have peace of mind knowing your deed was handled the right way.
Land Contracts
A land contract is a form of seller financing for real estate, under which a buyer takes possession of property and agrees to pay installment payments to a seller over time, in exchange for the seller agreeing to giver the buyer a deed to the property when all of the installment payments have been made.
Although some people think that land contracts are simple documents that a person can do themselves using forms downloaded from the internet, that really isn't true. There are a number of terms that need to be negotiated between the buyer and seller, and that should be included in the contract to provide clarity and avoid disputes. For example, some of the things that should be addressed include down payment amount, contract term, interest rate, monthly payment amount, payment due dates, grace period, late fees, whether the contract will fully amortize or there will be a balloon payment at the end, who will be responsible for paying real estate taxes and property insurance, whether the seller is providing title insurance, what type of deed seller will deliver at the end of the contract, what events constitute a default, seller's remedies upon default, method and address for notices, and so on. These are only some of the many considerations a person needs to take into account when drafting a land contract.
Clients who hire an attorney to help them prepare a land contract can have more confidence that the contract will successfully document their intent and help set up a successful transaction, without creating additional problems that will take more time, effort, and money to fix in the future. If you have real estate that you would like to buy or sell on land contract, let's talk. I can draft the land contract and other documents you'll need, so you can have peace of mind knowing your land contract was handled the right way.
Leases
A lease is a legal document used to give a tenant the rights of possession and use of real property over some defined period of time, in exchange for the tenant's payment of rent to the landlord who owns the property.
Although some people think that land contracts are simple documents that a person can do themselves using forms downloaded from the internet, that really isn't true. There are a number of terms that need to be negotiated between the landlord and tenant, and that should be included in the lease to provide clarity and avoid disputes. For example, some of the things that should be addressed include security deposit amount, monthly rent amount, payment due dates, grace period, late fees, who is responsible for utilities, maintenance, and repairs, who is permitted as a legal occupant of the premises, landlord's right to enter the premises and required notice to the tenant when that happens, what events constitute a default, landlord's remedies upon default, method and address for notices, and so on. The State of Michigan also has required disclaimers and notices that need to be given to tenants in the lease or in other documents, with specific requirements for the size and font. Depending on the area where the property is, there may be additional notices or lease requirements imposed by the local municipality. These are only some of the many considerations a person needs to take into account when drafting a land contract.
Clients who hire an attorney to help them prepare a lease can have more confidence that the lease will successfully document their intent and help set up a successful rental, without creating additional problems that will take more time, effort, and money to fix in the future. If you have real estate that you would like to lease, let's talk. I can draft the lease and other documents you'll need, so you can have peace of mind knowing your lease was handled the right way.
Real Estate Transactions
Buying or selling real estate is usually one of the biggest, if not the biggest, financial commitments a person will make in his or her lifetime. Michigan, unlike some other states, does not require the use of an attorney during a real estate deal. But having an attorney to help you during the process can help you better understand your legal rights and obligations, to negotiate with the other side more effectively, and to make better, more informed choices that you will hopefully be able to live with later on and not regret after the deal is done.
The real estate deal is a loosely choreographed dance that typically begins with a seller listing a property for sale to the public. A buyer then submits an offer, which states the terms on which the buyer would agree to buy the property. The seller then accepts, rejects, counters the buyer's offer. The seller and buyer might counter back and forth multiple times to negotiate things like earnest money, purchase price, closing date and date of possession (if different), form of financing, whether seller will provide title insurance, tax and utility prorations, contingencies for things like inspections, financing, or sale or purchase of another home, events constituting a default, each party's remedies in case of default, and so on. Eventually, buyer and seller reach a tentative agreement that is acceptable to both sides, at which point they are "in-contract." Meaning, they have an enforceable purchase agreement.
From there, the purchase agreement enters the executory period, which is the time when inspections are done, financing is arranged, and other contingencies that must occur before the closing are either satisfied or not satisfied. It's critical for the seller and buyer to understand each of their responsibilities and deadlines during this period, because these are the things that literally "make or break" the deal.
If the seller or buyer wants to be able to exit the deal if a certain contingency isn't satisfied before close, that party will want to keep close tabs on the situation. Invoking a contingency usually needs to be in writing, addressed to a specific person, sent by a specific method, and delivered by a specific time, otherwise the contingency is waived and the parties are obligated to close.
Needless to say, small details that occur during a real estate transaction can have huge consequences for both seller and buyer, both financial and legal. If the seller or buyer breaches the agreement, the other party may have the right to damages, but may also have the right to specific performance, which means a court order that forces the other party to go through with the deal according to the contract.
With the large amounts of time, money, effort, and emotional energy put into selling or buying real estate, you need good advice to guide you through the process. The typical players in a real estate transaction such as real estate agents, inspectors, appraisers, mortgage lenders, and title companies are there to help you, but they cannot give you legal advice. As discussed above, the legal consequences of even small details of a real estate deal can be significant.
For legal advice tailored to your specific situation that makes sure your interests are protected in a real estate deal, you need an attorney. If nothing else, you should have an attorney review the contracts you are asked to sign before you sign them. And then you should have an attorney that you can call for questions and other issues that might arise during the process. If you have real estate that you would buy or sell, let's talk. I can advise you throughout the process, so you can have peace of mind knowing your real estate transaction was handled the right way.
Please note that my real estate practice is limited to transactional and planning matters. I do not do real estate-related disputes and litigation, but I do provide referrals to other attorneys in the area who do handle real estate disputes and litigation. Thank you for your understanding.
Let's Talk.
I like to start all of my client relationships with a short chat on the phone to get acquainted and so I can learn about your legal needs. To set up a time to talk, fill out this form or simply give me a call at 517.240.4236
I look forward to hearing from you.
Trent Harris