Tag: real estate

Fixtures in the Sale of a House

Written by kwmlaw on October 12, 2023. Posted in Kelly & West News.

As anyone who has ever sold or bought a house knows, it is a complicated and often stressful process. To get through it as efficiently and easily as possible, it helps to anticipate and be ready to steer clear of potential legal disputes, particularly when the seller is living in the house when it is shown to the buyer and the purchase and sale agreement is entered into, goes to the very “heart of the matter”. What is the seller selling and the buyer buying? Specifically, what items will the seller leave for the buyer as parts of the property, and what items will the seller take away?

What is a Fixture?

A fixture is any item of physical property that was previously movable but has been permanently attached to, or is otherwise particularly adapted to, a house (or the land on which the house is built) so as to have become a part of the real property.

For the most part, fixtures are easy to identify, but in some cases, it’s not so clear. In the following, we’ll briefly describe the factors that are commonly considered when determining what’s a fixture and what’s not, then list some items that are usually treated as fixtures, some that usually aren’t, and some that can go either way.

“MARIA” – the Five Factors

MARIA is an acronym for the five factors that are most important in identifying fixtures. It stands for Method, Adaptability, Relationship, Intention and, Agreement:

Method (of attachment) – If an item is physically or permanently attached to the property, either by concrete, glue, screws, nails or otherwise, it is usually considered a fixture;
Adaptability (to the property) – If an item which is not itself permanently attached to the house or land is nonetheless particularly adapted to the property, it is usually considered a fixture (for example, a swimming pool cover or a floating floor);
Relationship (of the parties) – If an item is in dispute between a buyer and a seller, the buyer has the upper hand, because it is assumed that anything that the seller attached to the house (or the land) was meant to be a permanent fixture;
Intention (of the seller) – If the seller-homeowner intended to install or build an item into a house or yard as a permanent fixture, it is likely to be considered a fixture; and,
Agreement (between the seller and the buyer) – Specific provisions of the purchase and sale agreement between the seller and the buyer are often the deciding factor.

Fixture or Non-fixture?

Some items are usually treated as fixtures, parts of the real property, including:

Wall-to-wall carpets
Built-in cabinets
Ceiling fans
Mirrors fixed in place
Built-in bookshelves and utility shelves
Light fixtures
Curtain rods and window blinds
Towel racks
Awnings
Landscaping, shrubs and trees

Other items are usually not treated as fixtures and are removed by sellers, including:

Furniture
Rugs
Hanging mirrors
Detached bookshelves and utility shelves
Free-standing cabinets
Curtains and drapes
Wall-mounted televisions (the brackets may be fixtures, but not the tv)
Yard and garden decorations

FInally, there are some items in a house or yard that are close calls and often give rise to disputes between a seller and a buyer, such as:

Refrigerators, washers and dryers (built-in or just plugged-in?)
Above-ground hot tubs or swimming pools
Swingsets and other playground equipment
Security systems

Communication and Agreement between Seller and Buyer

Rather than assume anything about what will stay with a house and what will not, the seller and the buyer should openly discuss and agree in writing (one way or the other) either on general categories of items, e.g., “appliances”, and/or any particular item that seller or buyer is especially interested in, e.g., “the hot tub”. This will help them avoid unexpected and unnecessary disputes.

If you are considering selling or buying a house and need legal advice or assistance related to fixtures or any other real estate law issue, you can call us at Kelly & West and arrange for a free consultation.

5 Reasons You Should Conduct A Title Search

Written by kwmlaw on September 28, 2023. Posted in Kelly & West News.

Spring is a common time for house hunting; mortgage applications typically begin to increase at the beginning of February and grow steadily in the following months. When you’re in the market to buy a house, you keep hearing “title search” but first-time homebuyers may not feel entirely certain of what that means.

What is a Title Search?

A title search is a search of the public records to determine ownership of the property and to identify defects shown in the public records. In simple terms, the title lists any errors, judgments, restrictions, and other issues related to the property in the public records. Even if your home is new, the land involved still has a history to be researched. A title search will only reveal defects shown in the public records. Title insurance based on an attorney’s title search covers defects shown in the public records plus other defects that are not recorded in the public record, such as a forged deed. Normally, there is no need to conduct the title search until you have a contract to purchase the house. The standard Offer to Purchase requires the seller to deliver clear title and if the title search reveals defects then you do not have to close on the property.

Here are five such defects one might find when conducting a title search.

Mistakes in public records — Sometimes errors happen during filing that could affect the home’s deed. Correcting these errors can be a financial burden and need to be done prior to closing.
Liens — A lien occurs when banks place debts upon the property against the seller or previous owners, and when the owner has a judgment recorded or a lawsuit filed that may affect the title. When you purchase the home, the debts and judgments are against your property although you didn’t accrue them and need to be cleared up at or before closing.
Heirs/Wills — When someone dies, the decedent’s interest in land is transferred by a probated will or if no will by the intestacy laws of NC. A title search determines who the actual owners are, which may be difficult.
Encumbrances and Easements — This refers to a third party that has a lien or right to use your property. Easements may restrict you from using your land in the way you desire. If there are easements on your land then other parties will have the right to use it cross your property.
Boundary/survey disputes — Some surveys may differ from the ones you are provided initially. This can lead to neighboring properties claiming ownership of the property you were promised. A title search will find prior boundary disputes on record but a current survey is required to be sure of your boundary limits and is recommended.

When you sign the Offer to Purchase on the house you plan to purchase, contact the team of Kelly & West and we’ll conduct a title search and answer any questions you have about the real estate process. You can read more in our post, 6 Legal Questions to Ask Before Buying a Home. Only an attorney can explain any legal problem and provide legal suggestions.

Your Top Real Estate Questions Answered

Written by kwmlaw on April 27, 2023. Posted in Kelly & West News.

Selling or buying a home or property is more complicated than ever. We receive a lot of
questions about the particulars of selling and buying real estate. Here, we share the top 10
questions and their answers.

1. What steps are involved with closing on a property?

You work out the contract and sign the papers. The buyer then employees a real estate
attorney to perform a title search and work with the buyer’s lender to close the loan. The
seller may wish to hire his/her own attorney or may consent to the buyer’s attorney
preparing the seller’s deed and other documents. The attorney(s), the lender and the
real estate agent coordinate the closing process and transactions, creating a simplified
experience for the seller and the buyer.

2. Can I back out from a purchase contract?

Your right as seller or buyer to terminate your agreement is set out in the contract itself.
The buyer may pay a “due diligence fee” with the initial contract and, if so, have an
absolute right to terminate the contract for a certain period. Most agreements limit the
damages to the earnest money. The seller would have to refund the earnest money if in
default and be subject to damages suffered by the buyer due to the seller’s default. Also
the buyer may sue to specific performance and force the seller to sell to the buyer.

3. Can I add another person to a deed after closing on a property?

If a loan is involved, the Deed of Trust usually restricts any change in ownership of the
property and could trigger the “due on sale clause” allowing the lender to require that the
loan be paid off immediately. You should consult with your attorney before making any
such change.

4. How can I remove someone from my mortgage?

You must apply for a loan to refinance your mortgage under your name only. You must
consult with the lender and follow its requirements. One lender would have to consent to
release anyone from a mortgage which would be unusable.

5. Can I transfer my ownership of the property to someone else?

To transfer ownership of property, there must be a property deed. These legal
documents will transfer the ownership to another party. The deed must be notarized and
recorded at your county’s Register of Deeds office and normally you should use an
attorney to prepare this important document.

6. Can I transfer land that I own from my personal name to my business?

You can do so, but there may be tax consequences. It is best to consult a CPA.

7. How can I check to see if there are any claims against the property?

Title searches are used to inform the buyer of any liens or claims held against the
property. These searches should be done by an experienced attorney to find title
problems and any adverse claims.

8. Who is responsible for mortgage payments if someone dies without a will?

North Carolina’s intestacy law determines who inherits property when an individual
passes away without a will. Whoever inherits the real estate takes it subject to the
existing mortgage and will have to make payments, sell the property, or allow the
property to be foreclosed upon.

9. How can we divide the land amongst multiple persons who inherited it?

The co-owners can agree to divide the property by hiring a surveyor to prepare a map to
be recorded showing the newly divided tracts of property. The co-owners would then
employ an attorney to prepare the individual deeds. If all the parties can’t agree to a
voluntary division then you need to file a “petition to partition” that will enable the clerk of
court to decide how to divide or sell the property. Real estate attorneys are here to help
guide you through these necessary arrangements.

It is always a good idea to get an opinion from a professional to ensure quality decisions
on real estate issues. Our attorneys here at Kelly & West are trained to handle these
situations. Don’t face these difficulties alone; let us protect you. Contact us today.

How to Choose a Real Estate Lawyer

Written by kwmlaw on January 27, 2022. Posted in Kelly & West News.

Buying or selling your home? Whether you’re buying your first home or fifth home or selling a home, the process can have an emotional as well as a financial impact. Whether you are the buyer or the seller, the knowledge and experience of an experienced real estate lawyer can be extremely helpful when it comes time to close.

The decision to hire a real estate lawyer is particular to each individual situation. Just because you consult with a real estate attorney doesn’t mean you have to hire one but you should consider contacting an experienced attorney to make sure that you are protected. The attorney answer your questions and will know what questions to ask to make sure you avoid traps and pitfalls along the way so that the closing process proceeds as smoothly as possible and so there are as few delays as possible.

Benefits to Hiring an Attorney

Many real estate agents are happy to recommend a real estate attorney for you, but it’s often better to choose your own so that you can be confident in the advice of the attorney and in the assistance the attorney provides.

Your real estate lawyer will help you in several important ways, such as by:

Reviewing the closing documents prior to closing to help insure that they are fair to you;
Making sure that all parties have everything each needs prior to closing in order to close on the date chosen;
Answering the questions that will arise during the buying or selling process; and
Being there during all negotiations and guiding you toward the most practical decisions to protect you from any less than fair treatment by any other party.
If you are a buyer in N.C. you need to have a title search done even for a cash closing. The buyer must have an attorney if a loan is involved to certify a clean title to the lender and title insurance company.

The most important thing to remember before you begin your hunt for an experienced real estate attorney is this: your attorney is YOUR advocate and they will stand up for your rights and protect your assets.

If you have questions about the buying or selling process and would like to speak to an experienced and caring attorney, please contact us and let us protect you.

Everything You Should Know About Real Estate Contracts

Written by kwmlaw on June 10, 2021. Posted in Kelly & West News.

Contracts are essential in big purchases, especially real estate. It will be one of, if not the most expensive purchase you’ll ever make, and the transaction must be legally binding in the form of contracts. When talking about real estate, there are several kinds of contracts including purchase agreements, lease agreements, contracts for deeds, and rent-to-own. Let’s review them to find out why they’re necessary when you decide to lease, purchase, or sell a home.

First, you should note that both the buyer and seller of the home must sign all contracts to complete the deal. Real estate contracts typically cover the financial terms of the deal, the obligations of both buyer and seller, including rights to home inspection, closing date details, and outline the sale of the home. They’re legally binding and necessary for all real estate transactions.

Purchase Agreements

Let’s start with the most common contract, the purchase agreement. This contract is binding between the buyer and seller of the property and outlines all the details of a home sale transaction. These details can include:

Buyer and seller info
Property details
Pricing and Financing
Closing dates and costs
Termination conditions
Contingencies
Rights to Inspect

Note that not every purchase agreement will outline the same items. In an average transaction, the buyer will present the purchase agreement to the seller, and there will likely be some back and forth until everything is settled and both parties are satisfied. Once the purchase agreement has been signed, you’re now “under contract.”

Lease Agreements

Lease agreements are used for those of us who opt to rent instead of buy and landlords who are renting out their property. The lease agreement should outline:

Monthly price of rent
Length of rental and due date of monthly rent
Obligations of landlord and tenant

Lease agreements can be a bit confusing for those new to real estate, and we always recommend reviewing the agreement with an attorney to be sure you know what you are agreeing to.

Contracts for Deed

A contract for deed is a bit different than a purchase agreement. It’s a legally binding agreement that allows the buyer of the property to take possession of the home and start making payments to the seller; however, the seller still technically owns the title of the property until all payments are made. This kind of contract is appropriate in situations where the buyer cannot qualify for a mortgage due to poor credit history, etc. You are highly advised to speak to a real estate attorney before signing a contract for deed as these kinds of agreements can be tricky and NC laws require specific language and recordation.

Rent-To-Own

Lastly, let’s review rent-to-own contracts. These contracts allow a person to rent a property for a specified amount of time, with the option of purchasing the property before the lease is up. This is a great option for those unsure if they’ll like the area or the property specifically without making a huge commitment.

Have any more questions about real estate contracts? Contact the Kelly & West team today.

6 Legal Questions to Ask Before Buying a Home

Written by kwmlaw on April 15, 2021. Posted in Kelly & West News.

It is easy to fall in love with a home and forget about all those important legal questions you should ask before making an offer. It is important that you have these questions ready for your attorney and the seller’s attorney before moving forward with your purchase. The answer may not always be what you want to hear, but it will save you time, money, and many headaches in the future.

You are wise to be doing some research before making your purchase. Here are some questions that we feel are important to ask, because real estate agents may not always tell you upfront.

1) Do I need a real estate attorney to create a contract and to close on the house?

The law varies from state to state. In North Carolina, the majority of these sales contracts are presented to the home seller by the real estate agent. The agents usually use a standard form by the North Carolina Association of Realtors. However, a real estate attorney can complete the contract for you if it makes you feel more comfortable.

2) Are there any liens or claims on the property?

An attorney will do title searches and acquire title insurance for the home buyer after you have entered into a written purchase contract. This means we will examine any public records of present and previous owners to find any liens or claims on the property. And for a good reason; only after a title search will you learn that something may be wrong with the title to the land. The previous owner may not own the land, or the property may have claims that must be paid in full upon closing.

3) What should I look for in the property deed?

A real estate attorney will make sure that the property is transferred to the buyer without any defects shown in the public records. The property deed is the document that says the home buyer legally has ownership of the home or property. Also, make sure to ask if there are any deed restrictions that may prohibit certain construction on the property or use of the property. The deed needs to be notarized and then recorded in the county’s Register of Deeds office.

4) Are there any problems with the house?

Make sure you ask questions about the roofing, foundation, insulation, and any appliances or air systems that have been repaired or replaced. In NC, the seller is legally required to complete a “Residential Disclosure Statement” as a part of the “offer to purchase” whereby the seller is required to answer numerous questions about the conditions of the house. Also, make sure you ask to see the paperwork. Without any documentation, it is hard to be absolutely sure that the seller really replaced that AC system.

*Caveat Emptor, or Buyer Beware, puts the responsibility on the buyer to learn about any defects or problems with the home. If you wait until after closing, it will be too late. There is an Implied Warranty of Fitness, which means the seller should ensure that the property is habitable, but it can be hard to enforce and prove this in court.

5) What if something goes wrong after putting down a deposit on the home?

There are instances where you may put a deposit down, but then the house doesn’t pass inspection, or your mortgage isn’t approved. These contingencies should have been addressed in the Offer to Purchase Contract. In addition to Ernest Money, the buyer can pay a non-refundable “due-diligence fee” which allows the buyer to get its Ernest Money if the buyer cancels during the due diligence period which is the time period set for the buyer to inspect the property. The seller’s agent or attorney will hold the deposit. To get your deposit back, you may have to put up a fight. The seller’s agent/attorney will not be able to release your deposit unless they have consent from the seller. Make sure everything is in writing and pay close attention to the detail and dates in the contract. Your real estate agent is of great advantage to you in this case.

6) Is a short sale possible?

A short sale is when the seller owes more money on the property than the price that they are asking. Although it sounds like it may give you the upper hand in the bid, it is actually better that the seller has a good amount of equity in the property. If they do owe more than they are asking, it is unlikely that the seller will pay for closing costs or any repairs. The main complication is that the bank holding the debt has to agree to accept less than what is owed to it.

Keep in mind that the real estate market is always changing. Depending on when you are looking to purchase a home, the market may be more influential for the buyer or the seller. Don’t procrastinate on finding the answers to these questions because you may miss the chance to buy the home that you absolutely love.

Contact us today if you have more questions about buying a home and would like to consult with a professional real estate attorney at Kelly & West.

Your Top 10 Real Estate Questions Answered

Written by kwmlaw on November 20, 2020. Posted in Kelly & West News.

Buying a home or property is more complicated than ever. We receive a lot of questions about the particulars of buying and selling real estate. Here, we share the top 10 questions and their answers.

1. What steps are involved with closing on a property?

In North Carolina, any agreement to buy or sell real estate must be in writing to be enforceable. Standard “Offer to Purchase and Contract” forms approved by the North Carolina Bar Association and the North Carolina Association of Realtors are the usual and suggested form to be used. These standard forms are detailed, but they help make sure the buyer and seller cover their rights and responsibilities for the sale/purchase. The standard form mentioned is complicated, and you usually need to seek advice from your attorney to be sure that you fully understand the document. You work out the contract and sign the papers. The buyer will then employ a real estate attorney to perform a title search and work with the buyer’s lender to close the loan. The seller may wish to hire his/her own attorney or may consent to the buyer’s attorney preparing the seller’s deed and other documents. The attorney and the lender and real estate agent will coordinate the closing process and transactions, creating a simplified experience for the buyer and seller.

2. Can I place a bid on a property that has a pending offer?

A backup offer is an option when finding a property that you really like. It is a fully executed contract that will become primary should the current deal fall through.

3. Can I back out from a purchase contract?

Your right as a buyer or seller to terminate an agreement is set out in the contract itself. The buyer may pay a “due diligence fee” with the initial contract and, if so, have an absolute right to terminate the contract for a certain period. Most agreements limit the damages to the earnest money. The seller would have to refund the earnest money if in default and be subject to damages suffered by the buyer due to the seller’s default.

4. Can I add another person to a deed after closing on a property?

If a loan is involved, the Deed of Trust restricts a change in ownership of the property and could trigger the due on sale clause, and the lender could require the loan to be paid off immediately. You would need to consult with your attorney before making any such change.

5. How can I remove someone from my mortgage?

You must apply for a loan to refinance your mortgage under your name only. You must consult the lender and follow its requirements.

6. Can I transfer my ownership of the property to someone else?

To transfer ownership of property, there must be a property deed. These legal documents will transfer the ownership to another party. The deed must be notarized and recorded at your county’s Register of Deeds office.

7. Can I transfer land that I own from my personal name to my business?

You can do so, but there may be tax consequences. It is best to consult a real estate attorney and CPA.

8. How can I check to see if there are any claims against the property?

Title searches are used to inform the buyer of any liens or claims held against the property. These searches should be done by an experienced attorney to find title problems and any adverse claims.

9. Who is responsible for mortgage payments if someone dies without a will?

North Carolina’s intestacy law determines who inherits property when an individual passes away without a will. Whoever inherits the real estate takes the real estate subject to the existing mortgage and will have to make the payments, sell the property, or allow the property to be foreclosed upon.

10. How can we divide the land amongst multiple persons who inherited it?

You need to file a “petition to partition” that will enable the clerk of court to decide how to divide or sell the property. Real estate attorneys are here to help guide you through these necessary arrangements.

It is always a good idea to get an opinion from a professional to ensure quality decisions based on real estate. Our attorneys here at Kelly & West are trained to handle these situations. Don’t face these difficulties alone; let us protect you. Contact us today.

Is Now a Good Time to Sell Your Home? What to Know About Home Sales During COVID

Written by kwmlaw on August 11, 2020. Posted in Kelly & West News.

You might be wondering if now is a good time to sell your home. COVID-19 is changing the way we communicate and conduct business, and real estate is no exception.

Virtual house showings and online video meetings are the new norms, and you may be wondering if it’ll help or hurt you as you put your house on the market. Selling your home can happen fast, so it is essential to know the obstacles you’ll face.

The Housing Market

This area has long been in demand, and COVID-19 hasn’t changed that. Not many people are selling in our part of North Carolina right now, but people are still buying. That means now is a great time to sell, because the lower supply has led to increased prices. Sellers are often receiving multiple offers within a day or two of posting their house. However, if you’re also

trying to find a new home in the area, you might struggle.

What You Can Expect When Selling

Social distancing has given us more virtual meetings, and house showings have transitioned from in-person to Zoom and FaceTime. Online showings might sound like a hurdle, but this approach isn’t necessarily a bad one. Virtual showings can be a real time-saver for both the buyer and the seller. You’ll gauge who is serious about buying the home before they step foot inside. This way, only serious buyers will need an in-person showing.

However, you’ll want to prepare your real estate agent with as much information as possible. Buyers won’t fully appreciate certain aspects of the home that they otherwise would in person. Be sure that your Real Estate Agent is thorough in describing details. Inform them of any hidden features of the house an online viewer wouldn’t immediately notice. Fully describing the home’s assets will encourage a potential buyer.

Potential buyers will almost always want to see the home in person before making an official offer. Although you can offer virtual tours, your home should always be ready for viewing.

Homeowners who are living in the house can require people to wear masks during showings. It’s a good idea to have cleaning supplies ready; when you return, you can wipe down the doorknobs and any surfaces people are likely to touch when looking through a house.

The Closing

Eventually, selling a house requires in-person contact. Under typical circumstances, the seller and buyer are present for the closing, although not in the same room. While some closings are now occurring virtually, a lot of documents require a “wet signature” — meaning one you sign in ink in front of witnesses. Almost all of the buyer’s lender documents requ

keys in a door to a home — Photo by PhotoMIX Company from Pexels

ire a “wet signature” and many have to be notarized. Your lender will inform you which items need a wet signature and which can be scanned or signed electronically. These days, it’s best to be prepared to sign documents both ways.

We recommend your Real Estate Attorney is present for both in-person and virtual meetings; his or her job is to be your advocate and make sure you know what you are signing.

Contact Kelly & West for Help

Selling your home isn’t an easy process, and a global pandemic only adds to the challenge. We are here to make it easier for you.

Examples of When You Need A Good Real Estate Lawyer

Written by kwmlaw on February 27, 2020. Posted in Kelly & West News.

Buying real estate is often one of the biggest investments you will make, and usually a fun and exciting one. Obviously, you want the process to go smoothly.

You probably know that hiring a good real estate agent is important, but it’s easy to have your real estate agent recommend someone with whom they often work. While that might be OK, you might also consider searching out your own real estate lawyer, someone you trust, because it’s such a monumental purchase for you.

Some states even require a real estate lawyer during the closing on your purchase, but if they do not, you should consider hiring one. In North Carolina, your home purchase is required to be processed by a law firm.

What Does a Real Estate Lawyer Do?

A real estate lawyer is in charge of preparing all of the legal documents and ensuring that you have done your part as the buyer. They also work with zoning, estate planning, titles and more. If you are dealing with a foreclosure or other issue, a real estate lawyer needs to be involved with that.

You may think that when buying your house — if it has no title issues or other problems — a real estate lawyer isn’t as critical. But here are some specific examples of when they come in handy!

Closings

Anyone who has bought a house knows the amount of paperwork that comes with it! Most of this paperwork contains a lot of legal jargon. A real estate lawyer is there to help you through the legal terms and explain the contracts in plain language. You want to ensure that your real estate lawyer is knowledgeable in this area to confirm that you fully understand the documents you are signing.

Although going through contracts can seem tedious, you will be thankful that you went through them if a problem was to arise in the future.

Property Deeds

There are many different types of deeds, but essentially, all deeds transfer the ownership of a property from one owner to another. During this transfer, deeds need to be notarized and submitted to the county’s Register of Deeds office.

A good real estate lawyer helps you through this process, making sure that every step is completed. If any difficulties were to arise, the lawyer will step in and be able to handle the situation with your best interests in mind.

Title Searches

Title searches are very important when it comes to buying a new property. They are the process of sifting through records and determining who the owner is, as well as any possible claims against the property. Searches can even involve discovering the historical documents connected to a property. Having a good real estate lawyer to search for these records is important because as a potential purchaser, you should have all of the available information before you may make your final decision.

At Kelly & West, our real estate lawyers will make sure that your rights as a home buyer or home seller are protected while ensuring all necessary legal documents are in order.

We hope this gives you a better idea of when you need a good real estate lawyer, whether you are dealing with closings, property deeds or title searches. Remember, it is best to be informed before making an important decision such as purchasing a property.

5 Misconceptions about Lawyers and the Law — and the Truth about Lillington Lawyers

Written by kwmlaw on May 15, 2019. Posted in Kelly & West News.

Most Harnett County residents will need a lawyer at some point during their lives. While of course, many people won’t need a criminal defense attorney, we all need help with real estate, Wills, Trusts, and end-of-life planning.

Some people associate lawyers with being “money hungry,” the law as “corrupt,” and working with a lawyer as “helping the guilty.” We know it’s easy to blame lawyers for things, but most attorneys are committed to helping their clients navigate a complex system. Have you heard any of these misconceptions about lawyers and the legal profession?

Misconception: Lawyers take advantage of clients by charging high prices in times of need.
Truth: People sometimes believe that lawyers charge exorbitant prices because they know people are desperate and will pay either way. However, Lillington, NC lawyers contribute hours of energy, research, and time into a case. Most lawyers work more than 40 hours per week. The fees lawyers charge vary by location and type of attorney. While the cheapest isn’t always best, you can, of course, meet with multiple lawyers and discuss pricing before making a decision. There are more expensive and less expensive lawyers, and it’s up to you to decide what you need.

The Harnett County Courthouse. Photo by North Carolina Judicial Branch.
Misconception: Lawyers sometimes lie to win a case.
Truth: When lawyers are sworn in, they agree to high ethical standards. When you’re in court, you swear to speak nothing but the truth. Lying in court or on records can put a lawyer in trouble the same way it can for anyone testifying.
Misconception: Big companies always win against “the little guy.”
Truth: If you’re involved in a workers’ compensation case or personal injury case, you might feel intimidated by corporations and their legal teams. However, that doesn’t mean you should not speak to an attorney about your situation and consider suing for your rights.
Misconception: You don’t need a lawyer for a real estate closing, to create a Will, or in many other non-court situations.
Truth: Life is full of situations that require legal documents or a legal process, even if you don’t need to appear in court. For example, in a car accident, your attorney can help you gather evidence to help get your insurance settlement. When planning out your Will and estate, a lawyer will make sure the legal documents are set up properly, so your family doesn’t have to manage it later. A lawyer is your advocate, the person making sure all that confusing legal jargon is working for you — not against! So even for “just” a real estate closing, it’s critical to have someone checking on your behalf.
Misconception: Lawyers know how to argue.
Truth: While presenting an argument is part of being a lawyer, often the most essential part of our work is research, reading, and writing. We spend hours poring over documents, legal texts, keeping up with changes, and more — all to stay on top of our work.

If you have questions about hiring a Lillington, NC lawyer, please reach out to us to learn more.

What is TRID and How Can an Attorney Help You?

Written by kwmlaw on July 25, 2017. Posted in Kelly & West News.

Buying a home is an exciting and important step in your life, but there is much more to it than picking out the ideal home. There are dozens of forms to read and sign, terms to negotiate, and meetings to attend. One way the government has tried to uncomplicate this procedure is by revising previous laws and enacting the TRID rule for most closed-end mortgages.

What is TRID?

TRID was enacted in 2015 and is the combination of two Acts: the Real Estate Settlement Procedures Act (RESPA) and the Truth In Lending Act (TILA). TRID may be more commonly known as the “Know Before You Owe” rule.

Two Documents

TRID means you’ll see two extra documents:

The Loan Estimate: A three-page form that the buyer receives after applying for a mortgage. The estimate includes the estimated interest rate of the loan, monthly payment, total costs, and more.
The Closing Disclosure: A five-page form that provides the final details about the selected mortgage. The information contained in the Closing Disclosure is similar to the Loan Estimate, but the totals are the final, thus guaranteed, amounts by the lender.

What is A TRID-Certified Lawyer?

A TRID-certified lawyer will know all the details of TRID so you don’t need to stress about the details. Reggie Kelly, one of our own experienced attorneys, is TRID certified and can give you the guidance you need so you don’t miss any important dates or fine print that may work against you.

What Does TRID Outline?

Timing – With TRID in place, there are now strict timing guidelines in place that must be followed. The Loan Estimate must be provided to buyers no later than three business days after the lender receives the application and another copy no later than seven business days before consummation. The Closing Disclosure must be received no later than three business days before consummation. This matters to buyers because missing a timeline can mean missing out on that home you wanted.

0% Tolerances Category – This applies to the section in the Loan Estimate that details out loan fees and other fees. Fees paid to the lender, mortgage broker, or an affiliate must be written so that buyers cannot be swindled. You can also see exactly what you are paying for besides the cost of the property.
Written List of Providers – The lender must detail out a written list of settlement providers for which the buyer may shop for and the lender must provide sufficient information for those providers to be contacted and must state that the buyer may select a different provider for that service if desired. This helps you as a homebuyer to have access to providers, but know that you are not obligated in any way to use one of the lender’s providers. You always have the option to choose for yourself.

What Loans Are NOT Affected?

Home Equity Lines of Credit (HELOCs)
Reverse mortgages
Mortgages secured by a mobile home or dwelling not attached to real property

An Attorney Can Help

TRID was created to create fairness so consumers will understand what is happening in the home-buying process. But that doesn’t mean the game is always fair. Sometimes lenders can lead buyers to think something is required of them that is not. Even real estate agents may not be as trustworthy as you’d like. On the contrary, an attorney acts as your representative and only has your best interests in mind.

Navigating through the detailed process of home-buying can be daunting if you don’t have anyone representing you. An experienced attorney knows what TRID entails and can ensure that you’re given a fair deal and treated right.

Kelly & West have over 30 years of experience. Contact us to see how we can help you through the process of making your dream home a reality.

Estate Administration: Save Your Family From Years Of Court Problems With A Revocable Living Trust

Written by kwmlaw on May 23, 2016. Posted in Kelly & West News.

Most people assume that after creating a Will, their family will be all set. Everyone will get what they are supposed to get based on what instructions they leave in their Will.

Unfortunately, the process of dealing with an estate after someone dies is not that simple. Your family can spend months or even years finalizing everything — even when you have a Will in place. Here’s why: the Will goes through several steps in court before the Executor can distribute your assets to whomever you direct. So yes, your instructions will be carried out, but it may take a while.

Revocable Living Trust

Your family can avoid this annoying estate process if you create a Revocable Living Trust. A Trust is considered a separate “person” or separate legal entity in the eyes of the law. Title (your ownership) is transferred to this separate “person” called the Trust. That way when you (the Grantor), die, the Trust still exists. And because you didn’t own anything — the Trust does — there is nothing to go through court, making the process much simpler and faster — and your family won’t have to ask for the court’s permission.

Another benefit: a trust is private. Wills are filed with the Court and therefore become public documents but the trust document (called the Trust Agreement) is a private document and is not filed in any court or put on public record. Also, what most people don’t know is that when a Will is probated with the court, the court requires quite a bit of information before probating the Will such as the deceased person’s name, social security number, family information, bank account information, real estate information and other information about whether the deceased person has assets, such as life insurance, that will be paid outside the estate. A trust avoids having to provide the court with this information.

Costs

Creating a Revocable Living Trust is more expensive. A Will costs about $300 to $750 to prepare; however the probate process runs about $1,500 to $15,000, depending on the size of the estate, making the total about $1,800 to $15,750.

A trust costs between $2,000 and $7,500. This means in a larger estate, having a trust can actually be less expensive. Those with smaller estates might consider the higher cost, worth it for the privacy and the ease of administration as discussed above.

Whichever route you choose is up to you based on your personal feelings on the matter, your budget, as well as the size of your estate. Regardless of which option you choose, it’s important to have some documentation in place so your family knows what to do when you pass. The gift of a well-drafted estate plan is one of the best gifts you can give your family. We’re happy to answer any questions you have about setting up a Will or a Trust. Give us a call for a free consultation.

3 Reasons To Get A Property Survey When Buying Real Estate

Written by kwmlaw on June 8, 2015. Posted in Kelly & West News.

When you are purchasing real estate, there are a lot of decisions to be made, information to be obtained, and documents to be signed. It may be tempting to skip having a property survey completed, but you should give some serious consideration as to whether that is best. A property survey can do more than just define the boundaries of the real estate you are acquiring. It can alert you to issues that may cause you headaches, or even jeopardize your ownership, down the road. Here are three top reasons you should consider having a property survey done before you close:

Solve property disputes quickly. The seller may not be aware of any encroachments. If there is an encroachment on the real estate property you are purchasing, you need to know about it as soon as possible. Without addressing the encroachment, you could lose that part of the property. You also want to be aware of any encroachment of the seller on your future neighbors’ properties. For example, if the seller built a fence that encroached on another’s property, there will be costs associated in moving the fence. It’s best to handle such an issue before you make your purchase, either by establishing an agreement about the encroachment or having the structure moved.
Become aware of any restrictions. If the property you are buying is subject to certain zoning and/or building restrictions, you’d want to know ahead of time. If a homeowner association has restrictive covenants for a home, you’d want to understand what they will expect. Having a property survey completed will alert you if there are existing violations and make you aware of future limitations on your use and improvement of the real estate property. Depending on what the restrictions cover and how you expect to use the real estate, they may be a deal breaker.
Understand the rights of others in regard to the real estate. In some cases, a property survey may help you understand what easements or rights of way exist for the real estate you are purchasing. If there is an easement, you’d want to know who can use your property and for what purpose. You’d also want to be aware of any rights of way where others may need to pass through the property. Understanding how others can legally use your property will help you figure out how their use will affect you.

Addressing these topics before you purchase real estate will provide you with peace of mind and help prevent arguments with your neighbors or homeowner association after your purchase. Not every real estate transaction needs a property survey, though. If you’re unsure whether you should get a property survey, or you need a closing attorney, schedule an appointment with us to discuss your situation. We have more than 30 years of experience guiding clients through their real estate transactions. Our firm can help make the process less confusing.

Closings

Written by kwmlaw on December 15, 2014. Posted in Areas of Experience, Real Estate Lawyer and Legal Services.

A house closing may seem like a long meeting with a lot of boring paperwork to sign.

Still, whether you are buying or selling, it’s important to have an attorney you can trust explaining each document in plain language before you add your signature. Buyers and sellers often have conflicting interests as a home or property changes hands

While the real estate agent often acts as your representative during the process, he or she may use printed contract forms. Those require changes so they apply specifically to your situation. Otherwise, you may be left unprotected in case of a legal issue later, such as:

● If the property was altered unlawfully.
● If termites, asbestos, hazardous waste, radon, or lead-based paint is found on the property.
● If the closing does not take place for some reason.

Those legally binding documents may not feel like a big deal at the time, but if you have problems later with the home, you’ll want to know your rights. Buying and selling a home is one of the largest financial transactions of your life. Be sure you have an experienced home closings attorney guiding you through the process. Call Kelly and West at 910-893-8183.

Real Estate

Written by kwmlaw on April 17, 2014. Posted in Areas of Experience, Real Estate Lawyer and Legal Services.

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In today’s volatile real estate environment where short sales and foreclosures are more and more frequent, you need an experienced attorney to help you avoid potential pitfalls and to ensure that your transaction goes smoothly.

The real estate lawyers at Kelly & West will make sure that your rights as a home buyer or home seller are protected and that all necessary legal documents are in order.

We have been helping clients with real estate transactions for over 30 years and often find and solve many problems before they arise. For example, read more about TRID and how an attorney can help.

If you would like to discuss your needs with an experienced attorney concerning a real estate transaction, please give us a call at 910-893-8183.