Presenting the Offer
When you find the right home, move on it quickly. Have your agent run “comps” on similar sales in the neighborhood. Use this information to base your initial offer. Before your agent writes up the offer, he should attempt to find the sellers motivation. Where are they moving? Why are they selling? How long has the home been on the market? Do they have an offer on another house?
The agent will want to consider other aspects before writing up an intelligent offer. Is the property still for sale or are there offers pending? Is it a probate or foreclosure sale? How much do the sellers owe, are they willing to carry back a loan? Who pays for certain transfer fees may be decided by local custom. Different scenarios will dictate how a contract will be written up and presented.
Be Realistic with Your Offer
Negotiation time can be very emotional. If you give a low ball offer, the seller may reject it and any other offers. Your agent will present your offer with all the reasoning behind it. Your agent will be more effective if you are not present at the negotiating table. Let them do their job. They know more about the details of the offer and can present your offer in a positive light. When an agent presents an offer on your behalf, often there is another agent involved, the listing agent. If your offer is reasonable, expect 1 or 2 counter offers. You will be signing many papers during this time. Contract, counter offers, disclosures, addendums, reports and so on. Make sure to get a copy of everything you sign. You should have copies with the signatures of all those involved in the transactions.
After the seller has accepted your offer, the process of escrow and closing begins. Inspections need to be ordered and scheduled in a timely manner. The loan process will begin and generate an equal amount of paperwork. This can be a very emotional and confusing time because of what is involved. The agent will follow the transaction through the closing and will walk you through the steps and keep you informed.
Be patient, realistic and educated about the process. The typical real estate transaction takes 30-45 days to close after a contract is ratified.
]]>The following are definitions of common vesting as an informational overview. Consumers should not rely on these as legal definitions. We urge you to carefully consider your titling decision prior to closing, and to seek counsel to obtain the most suitable ownership choice for your particular situation.
Sole Ownership
Sole ownership may be described as ownership by an individual or other entity capable
of acquiring title. Examples of common vesting in cases of sole ownership are:
The title company insuring title will require the spouse of a married man or woman acquiring title to specifically disclaim or relinquish his or her right, title and interest in the property.
Co-Ownership
Title to property owned by two or more persons may be vested as follows:
Community Property
A form of vesting title to property owned by husband and wife during their marriage which they intend to own together. Community property is distinguished from separate property, which is property acquired before marriage, by separate gift or bequest, after legal separation, or which is agreed to be owned only by one spouse.
Joint Tenancy
Joint Tenancy is a form of vesting title to property owned by two or more persons, who may or may not be married, in equal interest, subject to the right of survivorship in the surviving joint tenant(s). Title must have been acquired at the same time, by the same conveyance, and the document must expressly declare the intention to create joint tenancy estate. When a joint tenant dies, title to the property is automatically conveyed by operation of the law to the surviving joint tenant(s). Therefore, joint tenancy property is not subject to disposition by will.
Tenancy in Common
A form of vesting title to property owned by any two individuals in undivided fractional interests. These fractional interests may be unequal in quantity or duration and may arise at different times. Each tenant in common owns a share of the property, is entitled to a comparable portion of the income from the property and must bear equivalent share of expenses. Each co-tenant may sell, lease or will his/her heir that share of the property belonging to him/her.
Community Property with Right of Survivorship
A form of vesting title to property owned by husband and wife during their marriage which they intend to own together. Right of Survivorship avoids probate. Mutual consent required for transfer. Decendent’s interest automatically passes to surviving spouse due to Right of Survivorship. Surviving spouse may have tax advantage.
Other Ways of Vesting Title Include:
A Corporation
A corporation is a legal entity, created under state law, consisting of one or more shareholders but regarded under law as having existence and personality separate from such shareholders.
A Partnership
A partnership is an association of two or more persons who can carry on business for profit as co-owners, as governed by the Uniform Partnership Act. A partnership may hold title to real property in the name of the partnership.
A Trust
A trust is an arrangement whereby legal title to property is transferred by the grantor to a person called a trustee, to be held and managed by that person for the benefit of the people specified in the trust agreement, called beneficiaries.
In cases of corporate, partnership, or trust ownership , the title company will require that it be furnished legal documents so that it may satisfy itself as to ownership rights of the parties to the transaction and any limitations which may exist on the sale, transfer or encumbrance of the property. Required documents may include corporate articles and bylaws, certificate of partnership and trust agreements.
FAQs about Holding Title
Who can Take Title?
Tenancy in Common
Any number of persons. Can be husband and wife. Must be legal age.
Joint Tenancy
Any number of persons. Can be husband and wife. Must be legal age.
Community Property
Only husband and wife
How is Ownership Divided?
Tenancy in Common
Ownership can be divided into any number of interests, equal or unequal.
Joint Tenancy
Ownership interests cannot be divided
Community Property
Ownership interests are equal
Who Holds Title?
Tenancy in Common
Each co-owner has a separate legal title to his undivided interest
Joint Tenancy
There is only one title to the whole property
Community Property
Title in the “community” (similar to title being in a partnership)
Who has Possession?
Tenancy in Common
Equal right of possession
Joint Tenancy
Equal right of possession
Community Property
Equal right of possession
How do Owners Convey their Interest?
Tenancy in Common
Each co-owner’s interest may be conveyed separately by its owner
Joint Tenancy
Conveyance by one co-owner without the others breaks the joint tenancy, and owners then become tenants in common.
Community Property
Both co-owners must join in conveyance of real property. Separate interests cannot be conveyed.
What Will be the Purchaser’s Status?
Tenancy in Common
Purchaser becomes a tenant in common with the other co-owners.
Joint Tenancy
Purchaser becomes a tenant in common with the other co-owners.
Community Property
Purchaser can only acquire whole title of community; cannot acquire a part of it.
What Happens in Case of Death?
Tenancy in Common
On co-owner’s death, his interest passes by will to his devisees or heirs. No survivorship right.
Joint Tenancy
On co-owner’s death, his interest ends and cannot be willed. Survivor owns the property by survivorship.
Community Property
On co-owner’s death, it goes to survivor in severalty. It goes by will to descendent’s devisee or by succession to survivor.
Community Property with Right of Survivorship
Decedent’s interest automatically passes to surviving spouse due to Right of Survivorship.
What is the Successor’s Status?
Tenancy in Common
Devisees or heirs become tenants in common.
Joint Tenancy
Last survivor owns property in severalty.
Community Property
If passing by will, tenancy in common between devisee and survivor results.
What is a Creditors Interest?
Tenancy in Common
Co-owner’s interest may be sold on execution sale to satisfy his creditor. Creditor becomes a tenant in common.
Joint Tenancy
Co-owner’s interest may be sold on execution sale to satisfy creditor. Joint tenancy is broken. Creditor becomes tenant in common.
Community Property
Co-owner’s interest cannot be seized and sold separately. The whole property may be sold to satisfy debts of either husband or wife.
What is the Presumption of Law?
Tenancy in Common
Favored in doubtful cases except husband and wife (see community property).
Joint Tenancy
Must be expressly stated and properly formed. Not favored.
Community Property
Strong presumption that property acquired by husband and wife is community.