Real estate or property acquisition involves the process of acquiring ownership over a specific real estate property. The land acquisition rules may differ from one country to another. Four modes of land acquisition include possession mode, prescription mode, agreement mode, and inheritance mode.
You can partner with certified property agents to chalk out the best investment strategy and know more about the market conditions in the United States. A reputed company offering property acquisition services will assign you a professional property expert so you can decide to buy, sell, retain or hold, or refinance the property. Hiring a professional agent can prove to be beneficial when he represents you (as a buyer’s agent) and negotiates acquisition deals on your behalf.
Two primary documents needed for property transactions include the following:
Sale & Purchase Agreement
The sale and purchase agreement is the most important document for both the buyer and the seller. It is an agreement that contains all the crucial business terms such as the description of property space, purchase price, deposit, closing date of the deal, and any extra terms. It also holds certain conditions mentioned for the buyer’s benefit. The agreement deed also outlines other essential documents needed for the completion of the transaction. Other documents such as bills of sale, deeds, title clearance papers, transfer tax clearance, and FIRPTA will be required to complete the transaction.
Report of Due Diligence
When the sale and purchase agreement is duly signed by all parties involved, it is the sole responsibility of the buying party to prepare a due diligence report concerning the land or property being acquired. It can include zoning searches, reviews of surveys of the land, reviews of the leases, and more. The lawyer can recommend an independent assessment of the property environment and a separate engineering review of the real estate space. The buying party’s lawyer can give a title opinion and obtain title insurance. A title policy can be obtained by both buyer and seller.
The Warranties Provided by the Seller to the Buyer
The selling party may give limited warranties and the buyer usually takes the property in its ‘as-it-is’ condition. This concept is referred to as caveat emptor, which literally means that as per commercial transaction law, the buyer purchases a specific property at his own risk when there is no express warranty in the property contract. It also indicates that the buyer should conduct thorough and detailed due diligence for the property he wants to acquire.
Legally Binding Agreement
When the sale and purchase agreement is executed, both buying and selling parties become legally bound. However, a buyer can terminate the property deal if he is unsatisfied with the due diligence report that states the real condition of the property.
Leading property management company National Real Estate Management Group can offer full support and guidance through its property acquisition services. As a smart investor, you will find an expert team at your disposal to scout potential properties that meet your criteria. With proper guidance from specialist agents, the process of property acquisition or property sale can be completed without any mishaps.