Take the Stress Out of Your Investment Equation

The purchase of a home is one of the most major life decisions a person can make. It is normally the most costly item that one buys. The investment of such a drastic amount of money requires that sound and wise choices be made from the start.

Once you have ascertained the price range you are seeking, it is suggested that a pre-approval letter be obtained from a reputable lender. We advise our clients to shop around to obtain not only the best interest rate, but also the best loan product as a whole.

Inquire of your mortgage lender of the types of loans that you may qualify for, as well as any home buying programs that you may qualify for. Once you have found a home, and are ready to make an offer, inquiries of the owner are essential. 

Alabama law currently recognizes the theory of caveat emptor, a Latin term for "Let the buyer beware" that applies to purchases of existing homes and undeveloped land. Thus, it is the purchaser's obligation to make inquiries about the condition of the home and real estate.

It is strongly recommended that a home inspection be performed by a qualified licensed home inspection company. Your contract of purchase should state it is contingent upon obtaining a satisfactory home inspection. 

Notwithstanding the home inspection, do your own homework regarding flood plains, the sanitary sewage system operability, and drainage issues. 

Ask, and get written responses, regarding the condition of the home, i.e., foundation, plumbing, and HVAC.

Signing a contract saying the property is sold "AS IS" means the purchaser has no assurances of its condition. It is strongly recommended that you do not sign a purchase contract stating that the purchase waives all warranties, especially implied warranties. 

An engineering survey reflects the boundary lines of the property and details of the existing improvements made upon the lot. Survey matters may not be covered under the Owners Title Insurance Policy, and thus if you are concerned about survey matters, then it is well worth the money. 

When the property being purchased is not within a platted subdivision, it is always suggested that an engineering survey be performed. 

We always recommend a buyer obtain Owner's Title Insurance. Title Insurance is policy of indemnity protecting homeowners and lenders from financial loss in the event that certain problems that are discovered concerning the title to their property. 

Even though a title examination is performed for every closing, there are often defects in the title that cannot be located even with the most diligent searches. This includes, but is not limited to, forgery in prior deeds, missing heirs, errors within legal descriptions, and improper execution of documents.

The Lender's policy protects only the mortgage lender in the event of a defect. The Owner’s Title Insurance Company protects the owner for those costs and expenses the Owner would suffer in the event of a claim. If you question whether or not you should purchase Owner’s Title Insurance, you should discuss with an attorney. 

Potentially. Builders are required to provide a warranty of habitability, and warranty of their workmanship. Many builders attempt to limit their warranty to a written one-year warranty. You should be wary of the one-year warranty, and seek the advice of counsel before agreeing to sign. The time frame for filing suit against a builder who has not provided quality work varies, dependent upon the status or occupation of the seller and the ability of the purchaser to discover the defect. Generally, the least amount of time is two (2) years from the first injury suffered; and the maximum is six (6) years from substantial completion of a new home. There are exceptions. Seek the advice of an attorney as soon as a defect is discovered.