We all love cash transactions. Generally they are smooth and logistically easier than closings with lender financing. While there are a few issues that you as a Realtor do not have to address with a cash closing (i.e., lending), there are so many other issues that you need to make sure your client is aware of. Below are some points that you want to make sure you have addressed with your buyer (although the closing attorney should be addressing many of them at the closing).
I am pleased and humbled to announce I was selected as Best Lawyer in the Connect Savannah 2017 Best of Savannah issue for the second consecutive year. As a closing attorney, I have the opportunity to work with the best and brightest Realtors in the area (including Chatham, Bryan, Effingham, Liberty and Bulloch Counties). Thank you so much for giving me the opportunity to work with you and your incredible clients.
Many of you have handled a transaction involving an investment property. And as you know there are a number of contract issues that you must address that are not involved with the closing of a primary residence. I wanted to use this post to put all of those issues into one article. Now every deal is different, but the issues below are fairly common for any occupied investment property.
The Lease
You should include a requirement in the contract that the seller will provide a full copy of the lease within three days of the Binding Agreement Date. Why is this so important? Your client needs to make sure he or she is comfortable with the terms of the lease (i.e., rental rate, lease term, etc.). At closing the lease will be assigned from the seller to the buyer effectively making the buyer the new landlord. If the lease terms are not favorable based on your client’s investment goals you will want to make this determination during due diligence so your client can terminate the contract.
Important Change To The 2017 Community Association Disclosure – Listing Agents Beware
Back in May 2016, I posted an article regarding disputes arising between the buyer and seller in connection with the Community Association Disclosure (“CAD”). The issue that frequently caused problems was that while the seller was filling out the CAD to the best of his or her knowledge, the seller either (1) failed to include all of the relevant fees, charges, etc. on the CAD or (2) was unaware of some of the same (i.e., transfer fee). If the seller failed to include a fee or charge on the CAD, arguably it was not clear whether the buyer or seller was responsible for paying those fees at closing. My advice to the selling agents was to attempt to contact the HOA to confirm the accuracy of the information included in the CAD during the due diligence period.
