Copywritten by Tracey Anderson in 2006.
A mortgage is often the biggest commitment a person makes, so it's important to think about all the legal and financial details before jumping in headfirst. You can often get good information about these details from your mortgage broker, banker, or real estate agent. If you're still not sure, you may want to hire a lawyer to look over your contract, look out for strange or potentially harmful clauses, and explain the details to you. Always take the time to read the contract, and if you don't understand it, ask someone else for help. A dishonest lender, broker, real estate agent, or seller might try to get you to sign a contract without reading it or, even worse, to sign a blank form for them to fill out later. Don't give in to this pressure, and always make sure you know what you're signing before you do. If someone tries to get you to sign a contract right away without giving you time to read it, the best thing to do is to walk away.
Once you find a house and get a mortgage, the legal process of transferring ownership from one person to another is called conveyance. It is a very specific and complicated process. Your mortgage broker, lender, or real estate agent might know how the process works and be able to help you. But the process itself must be done by a lawyer or a person who is licenced to do that. A homeowner can also choose to do the job themselves with a "do-it-yourself" kit. Conveyance comes with a conveyance duty that must be paid to the state. However, if you are a first-time home buyer, you may be able to get out of this in some states.
The property title, which is usually called a Torrens title, is proof that the property is owned. Old System titles are more complicated, and the buyer must show that each previous owner had a clear title.
The issue of who gets to live on must also be dealt with. Most of the time, a husband and wife own their home together. This way, if one of them dies, the other will still have the right to the property. If a home is owned by tenants-in-common, on the other hand, each tenant owns a separate part of the home, which would become part of the estate of the person who died. Common law says that if nothing else is said, joint tenancy is assumed.
Doing a thorough inspection before buying a home can keep you out of trouble with the law. You can inspect the home yourself or hire a professional who is trained to do so. In either case, you'll find out about any problems with the house that you can use in your negotiations. If you know about the home's condition and any flaws or defects before you buy it, you will be in a better legal position, since it may be hard to get your money back for flaws you didn't know about after the deal is done.
