I realize that there is one thing that routinely annoys most buyers and sellers involved in a real estate transaction: the amount of paperwork involved. On the seller’s side, you have the listing contract, sales contract, addenda, affidavits of title, deed, etc.; on the buyer’s side is the purchase agreement, addenda, loan application, promissory note, mortgage, title insurance documents, affidavits, etc. In this age of “going green,” is it really necessary to waste all this paper just to document a single home sale? Unfortunately, the answer is yes… and we have the fault of the old English Parliament for passing “An Act for the Prevention of Fraud and Perjury” in 1677.
More commonly known as the Fraud Statute in most jurisdictions today, this law requires certain types of contracts to be put in writing and signed by the parties. One such contract that is required to be put in writing is a contract for the sale of an interest in land (real estate). The contract should not only be put in writing, but should generally contain the material terms of the agreement, such as a description of the property, the purchase price, the method of payment, and the settlement date. While there are some scenarios that allow the transfer of an interest in real estate to fall outside the Fraud Statute, most transactions must be properly documented in writing, such as the Standard Agreement for the Sale of Real Estate that is often used by agents. of real estate in the Commonwealth of Pennsylvania.
In addition to the legal requirement to put real estate transactions in writing, it is also a very necessary practice so that all aspects of the sale agreed by the parties are recorded. Imagine if a seller verbally agreed to include a refrigerator, blinds, and ceiling fans in the sale of his home, but never included it in the written contract. If the seller really did remove these items from the house, it would be much more difficult for the buyer to prove that they were part of the sale (and the negotiated sale price) if they had to engage in a “he said, she said” battle with the buyer. seller.
While this is a fairly minor example of the type of dispute that can arise between a buyer and a seller, I can assure you that I have represented many clients who were involved in disputes over certain matters that were never put in writing, do not leave a similar situation affects your next real estate transaction.
Whether you’re gifting property to a family member, buying or selling your home, or amending the terms of a previously executed sales agreement, always put the agreed terms and conditions in writing…even though you may end up using a few more. sheets of paper, you’ll save a lot of money on future legal bills, and that’s always a good thing (although my fellow lawyers may disagree).
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