Residential Real Estate Law

The sale or purchase of a home is one of the most important legal transactions to which you will ever be a party. Understanding the process and legal requirements is absolutely vital. I encourage my clients to confer with me in advance of signing any legal documents that form a part of the real estate transaction. Real estate agents may act as a seller’s agent, a buyer’s agent, or as a dual agent, representing both the seller and the buyer in a single transaction. Under state law, real estate agents must provide you with written consumer notice that details your relationship with them.

Under the Pennsylvania Real Estate Seller Disclosure Act, a seller (exceptions exist) who intends to transfer any interest in residential real property must disclose to the buyer any material defects with the property. All applicable items in the Disclosure Statement must be completed and supplied to the buyer prior to the signing of a written agreement by the seller and prospective buyer. Material defects are problems affecting the property’s value, or which pose an unreasonable risk to people on the property.

The Agreement of Sale is the contract between the buyer and the seller for the purchase of the home. It should contain an accurate description of the property and all of the terms of the sale, including the price, the terms of payment, the type of deed to be given, the date of possession, proration of real estate taxes, transfer taxes, financing, inspections and other contingencies. In many cases, provisions for items of personal property or fixtures may be needed as well. The buyer and seller will sign off on the purchase agreement, with any changes and concessions also being in writing. Closing costs may include the following: transfer taxes; recording fees; title insurance; property taxes; and commissions.

In Pennsylvania, a seller who agrees to sell a particular property must do so unless the buyer fails to meet all the terms of the purchase agreement. This is called specific performance. Specific performance is the court-ordered performance of each party’s duties under a contract. Courts often award specific performance as an alternative to damages when the subject matter of the contract is unique. Such is the case with real estate purchase agreement; each parcel of land is unique. If you are having second thoughts about a particular sale, you should contact an attorney immediately.