Legal Support of Real Estate Transactions

Support of real estate transactions is characterized by the scope of features that relate them to the most complicated in the system of legal relations. It is connected with sufficiently wide and intricate regulatory framework, high value of objects that compose its subject, observing the scope of mandatory conditions, without which the transactions may be considered as unconcluded or null and void. For the majority it is not important how much would cost the support of real estate transaction. The only thing that matters is cogency of such transaction. Traditionally the participants of real estate operations intend to gain the support of professional lawyers that are specialized it this area of law in order to avoid the pitfalls and be certain in favourable outcome. Legal support of real estate transactions helps to avoid litigation to reinstate the right.

Why is it necessary to provide legal support of real estate transactions ?

Real estate traditionally has high material value. It is also a subject of investment of available cash assets. For many stakeholders settlement of transaction on condominium conversion, home or land parcel purchase is the most important goal in a life. Years are taken to accumulate necessary funds. Low legal literacy of the population attracts the large number of frauds to the real estate market. They use unawareness of one or several participants of the contract related to real estate trying to make a profit and obtain funds by unlawful means.

There is not the only one danger in the process of purchasing the apartment. Many owners are attracted by the legal support of real estate transactions because of possibility to transfer the responsibility to other person. Certain difficulties are related to verification of reliability of counter-agents. Not many individuals are aware of means used to make certain of solvency of the purchaser or to determine whether the seller has a property right to the object or to verify the authenticity of the power of attorney issued by the notary officer at the other locality.

Services on support the real estate transactions    

The customer who acts as a seller or purchaser of the object defines certain amount of services in legal support of real estate transactions that may be required of the real estate lawyer. This amount depends on level of awareness of the contractual party in customary business practices while concluding such transactions and the level of legal literacy.The majority of those who turned to lawyers prefer to conclude packaged support of real estate transaction, value of which includes:

  • Verification whether the object belongs to the seller, absence of encumbrances and arrests seized by third parties or judicial (executive) authorities in the register;
  • Consultations on the value of transaction during the negotiation process;
  • Collection (re-issuance) of documents necessary to enter into transaction;
  • Participation in the process of concluding transaction (its signing) as a witness;
  • Participation in the process of transferring funds in payment of the transaction;
  • Real estate registration.

Packaged services on support of the real estate transactions are characterized by the high value. That is why it is possible to rely on legal services only in the most critical situations such as the following:

  • Verification whether the real estate object is encumbered by third party rights;
  • Reliance verification in relation to the seller;
  • Verification of authenticity of provided documents to the object.

Peculiar features of contracts

Uncontrolled development of the market of legal services providing created large number of persons who have legal education in private capacity, without any registration of the private entrepreneurship or legal entity.
Turning to such “universal lawyer”, you risk to obtain more problems instead of simplification the transaction. Even entering into contract with the private entrepreneur cannot warrant reliable attitude based on good faith principles of the person.

Fraudulence committed by lawyers in the framework of legal support of the real estate transactions is common. The most disadvantegous situation is when the person who obtained the advance payment ceases to contact because of overload. He assures the client about impossibility to obtain certain documents or finds other means to avoid any commitments.

To avoid such circumstances, the following is necessary:

  • Examine the market - cost of legal support of real estate transaction;
  • Enter into contract with specialized legal agencies or private entrepreneurs who gave a good account of themselves, avoiding services of private persons;
  • Calendar schedule of executing instructions is a mandatory exhibit ti the contract;
  • After fulfilling the part of support of the real estate transaction cost of performed works shall be paid only after signing the delivery and acceptance certificate;
  • The contract should include the forfeit penalties for unjustified refusal to fulfil the instructions or delay.

Legal support of real estate transactions - risks of refusal

Needs in services on legal support of real estate transactions appear in case of non-confidence in intentions of counter agents or uncertainty in relation to the real estate object. Peculiarities concerning verification actions are far from many individuals. Many purchasers cannot access to databases including information about reliability of the seller. In the same way they cannot identify the fraudulent scheme or clarify the falsification of documents on real estate. They are also subject to psycholinguistic influence of frauds. Often such action mean the following:

  • Limitation of time given to view the documents;
  • Providing copies instead of original documents;
  • Offer to reduce costs using services of lawyers, notary officers, real estate agents who are “friends”;
  • Presentation of the person who is incapable or unaware of his actions as an owner of real estate object;
  • Fraud while transferring costs (hanging out for payment only in cash, refusal to provide bank details or deposit funds at  notary office or in some safety deposit box);
  • Concealment of defects of real estate object significantly reduces its value or makes it inapplicable.