Sure, we all know that the keys to great real estate investment are “Location, Location and Location” … but do NOT forget to read the fine print of all documents, between you and the real estate broker, or mortgage broker, and the purchase agreements, mortgage notes, and deeds of trust. A small change in a word here and there, and a number or two, can completely change your future!
First of all, you’re going to need your own attorney. Preferably a Real Estate Attorney specializing in their field, but honestly, it could be a transactional / business attorney, or a Los Angeles Personal Injury Lawyer … it really doesn’t matter so much what the attorney’s specific experience is, so long as they force YOU … to read the fine print.
For example, are there two (2) real estate agents or brokers involved, or just one? If it’s just one, then you should understand that that agent or broker, although hired by one side in the transaction, has major responsibilities to BOTH parties. The single agent or broker MUST disclose to both parties, anything of any importance that he discloses to the principle that hired the agent or broker. If there is an e-mail from agent to principle, that discloses material information of substance, then a copy must also be sent to the other side of the transaction, disclosing the very same material information, and with follow-up, in order to make certain that the information was well understood.
Do the agreements that you are signing provide for Mediation in case of a dispute, or do they provide for Binding Arbitration? It makes a big difference. If the agreements provide for Binding Arbitration, what County is designated as the venue? Is it Los Angeles County, Orange County, San Bernardino, or Ventura County? If you don’t read the fine print, you may find yourself at an extreme disadvantage, at a very stressful time.
You need to approach a real estate transaction in much the same way as you approach taking your car to an auto repair shop. In both situations, the professionals that you are dealing with know much, much more about the transaction than you do, and so you must be very vigilant. At an auto repair shop, you need to ask a lot of questions, seeing just how well they explain the repairs, and why they are necessary. It may even be wise to get a second opinion from another mechanic. In real estate, the lenders and brokers and agents will know much more about the transaction than you do, so you must also be very vigilant. Don’t jump into anything suddenly.
By law in California, every real estate sales contract automatically gives the buyer a THREE (3) DAY Grace Period, in which to rethink the decision, and cancel the deal if the buyer wishes to. That Grace Period is there for a reason … it is necessary to protect the buyer from making a rash decision. Take advantage of the Grace Period.
You must be highly analytical, and the involvement of a qualified attorney can help you in that regard. Do not be swayed by fast-talking sales people, and do not “judge a book by its cover,” meaning, do not decided to buy real estate because the real estate agent is attractive, or appealing in some way … believe me, you will likely regret it later, if you do. Go over the fine print carefully … and just so you understand, in practice, it is virtually impossible to “go over the fine print carefully” on your own. You really must get someone else involved, so that you can go over the fine print with another human being, preferably an experienced professional.
