Real Estate Lawyer Midvale Utah (2024)

There are
many things that need to be considered when purchasing real estate. It’s not an
easy process. There are many laws and regulations that have to be taken into
account. After you buy the property as the owner you are legally responsible
for the property. That’s why proper due diligence must be done before you
conclude the deal. If you are planning to purchase real estate in Utah, speak
to an experienced Midvale Utah real estate lawyer. The lawyer can guide you
with the purchase process. Utah real estate law is complex.

Before your buy a property it is important to get a title review done. Hire
the services of an experienced Midvale Utah real estate lawyer. The lawyer will
conduct a proper real property title review and can inform you if the title is clear.
Buying a property without the services of an experienced Midvale Utah real
estate lawyer isn’t advisable.

Unlike stocks, bonds, automobiles or other tangible assets where ownership
and quality of title can be determined simply by reference to a single document
such as a bill of sale or certificate, real property ownership interests
require a thorough analysis of the public recorded ownership chain over many
years. Real property is also subject to multiple divisions of the ownership
interest (e.g.: fee simple, co-tenancy, joint ownership, right of survivor,
etc.) and various classes and kinds of encumbrances (e.g.: mineral
reservations, lender liens, workman liens, easem*nts and other rights of
ingress and egress, etc.). Conducting a proper real property title review can
be daunting even for a seasoned professional. Making sure that the title is clear is an
important part of the purchase. Title review is not something that you can do
on your own. You have to review many documents and you should be aware of the
applicable laws and regulations. This job is best left to an expert. Seek the
assistance of an experienced Midvale Utah real estate lawyer. The lawyer will
assist you through the entire process.

Gathering Documents and Initiating the Process.

Because the process of securing title insurance is lengthy and
time-consuming, identify title insurance company to be used and contact them as
soon as possible in the diligence process.

Obtain a current extended coverage title report and copies of all documents
shown in the report, and inquire of seller about any other instruments not
shown by the records.

Obtain a copy of the deed by which the seller acquired its interest in the
property, as well as the acquisition agreement. Are there any deed conditions,
covenants or restrictions that might affect the future use of the property?
Ordinarily, extended coverage title protection will be required by the buyer.
Accordingly, an extended coverage preliminary title report should be ordered
for the initial title review. Also review the form of policy that the
designated title company plans to use to determine that it conforms with
extended coverage protection. Explain and discuss the scope of coverage with
the buyer: be sure the buyer understands and appreciates the limitations of
particular title insurance and appreciates the limitations of particular title
insurance coverage, especially as related to the buyer’s objectives for the
property.

Confirm that all mortgages, deeds of trust, and other liens encumbering the
property have been satisfied and released (unless they will be assumed by the
buyer). Review all loan and mortgage documents to determine the conditions of
assumption, and obtain estoppel certificates from each lender or mortgagee.

Obtain from the seller copies of all existing surveys, plats, and
surveyor’s reports and certifications. Order new surveys or updates if
necessary. Obtain new or updated ALTA “as-built” survey showing location of
improvements, etc. Ensure that survey is certified by licensed engineer or
surveyor who prepared it.

Perform Physical Inspection of Property. Diligence investigators can learn
a great deal from simply visiting a property. This step is commonly overlooked
and many problems can arise in a situation where no one from the diligence team
has actually visited the property.

Special Considerations for Leasehold Estates. Obtain and review copies of
leases and rent rolls. Determine nature and amount of security deposits. How
are they to be transferred? Review any special statutes or local laws
applicable to security deposits. Determine whether any statutory rights of
first refusal exist in favor of any tenants.

Estoppel Certificates should be prepared and sent to tenants as soon as
possible. The certificates should confirm the terms of the lease and the
nonexistence of any defaults or bankruptcy proceedings against the tenants. If
estoppel certificates are not available, should the seller make any warranties
or agree to indemnities with respect to such leases?

Reciprocal Easem*nt Agreements need to be carefully reviewed concerning
possible effect on present and future plans for the property, notices required
to be given to parties under the reciprocal, etc.

Special Assessments for Taxes. Taxing authorities can levy special
assessments on properties and they are easily overlooked in the diligence
process. Contact all relevant taxing authorities to determine if any special
assessments apply to the property, and if so, what payments are due, what they
relate to and other relevant information.

Mechanics Liens. Check with the seller to determine if there is any work
recently completed or in progress. If so, agreement should be reached with the
seller concerning how to handle possible liens arising out of the work. Can
title insurance solve the problem?

Physical Condition of the Property.

As noted above, a site visit to each piece of real property involved in the
transaction is generally prudent and advisable. Following are some guidelines
to follow in connection with the site visit.

Age/Condition. Age and condition of improvements and fitness for intended
use: structural, mechanical and electrical components (“tire kicking”).
Determine whether any building code or other violations exist with respect to
the Property.

Engineering Studies. Many parcels will have had or will require in the
context of the current transaction, one or more engineering studies. Among
other things, the engineering studies may address: (i) soil condition, (ii)
grading/filling/drainage, and (iii) utility access on the site.

Other Analyses. As a part of the engineering reports or in separate reports
or analyses, one or more of the following should be addressed: (i) wetlands or
environmentally sensitive areas, (ii) archaeological sites, and (iii) presence
of cemeteries or other protected sites.

Miscellaneous Potential Problems. While conducting the site visit, be alert
for indications of flooding, presence of nearby wetlands, adjoining nuisance
properties, and the like.

Governmental Requirements.

Every parcel of real property is subject to a variety of laws, rules and
regulations, often involving federal, state and local authorities. It is
important to understand in the course of the due diligence investigation the
totality of this regulatory network. Often, the best way to secure this
understanding is to retain knowledgeable local counsel to assess zoning,
condemnation and other relevant areas of regulation. In addition, other experts
may be required to assess environmental regulations and use regulations such as
Americans with Disabilities Act compliance.

Financial and Accounting Matters.

Books and Accounts. Work with the financial and accounting members of the
diligence team to review the books and records relating to the property. This
will often raise issues affecting other areas of the investigation, such as
payment of taxes, status of lease payments or receipts, expenditures for
environmental remediation, etc.

Other Contracts and Agreements Affecting the Property. Obtain copies of and
review all material contracts related to the property. These should include
agreements pertaining to the operation of the property, including management
and maintenance contracts. Determine whether each contract may be assigned or
terminated. The seller should carefully review the seller’s obligations to the
project’s employees and the continuing liabilities that can be incurred (e.g.:
collective bargaining agreements, unemployment compensation, etc.).

Utilities. Determine the availability and sufficiency of all required
utilities and obtain copies of any governmental or private agreements regarding
utilities.

Prorations and Closing Costs. From a review of the financial records and
books, determine what costs and expenses should be prorated between buyer and
seller. Such items may include:

• Rents.
  How are delinquent rents to be handled? What about overages?
• Other
  income from the property
• Real property taxes
• Based on last assessment
  statement
• Based on information from
  assessor if no current assessment statement available.
• Are any tax protests pending?
• Is tax statement
  divisible to cover only property conveyed? If not, who obtains the tax
  division?
• Insurance premiums on
  assigned policies
• Interest on existing
  mortgage indebtedness
• Sewer charges
• Utility charges. Also
  consider whether there are any utility impounds or escrows that need to be
  transferred or credited.
• Property owner or
  homeowner association charges
• Any instalment payments
  on personal property included in the sale
• Lease commissions

Closing
Costs: Determine how closing costs should be allocated between or among the
parties. These costs often include:

• Title insurance
• Escrow fees
• Appraisal fees
• Survey fees
• Tax service
• Notary fees
• Legal fees
• Pest control work
• Reconveyance fees
• Transfer taxes or revenue
  stamps
• Prepayment fees on
  outstanding loans
• Broker’s or finder’s
  commissions

Possession and Risk of
Loss.

Date
of Possession. Ordinarily, possession is delivered at closing. If the buyer is
to obtain possession earlier or the seller is to stay in possession after the
closing date, consider the need for a lease or other occupancy agreement.

Required
Actions. Is seller required to terminate any leases or other occupancy rights
prior to closing? If so, cover in purchase contract.

Right to Enter. Provide for buyer’s right to enter property prior to
closing, for tests, inspections, etc. Consider buyer’s need to carry public
liability/property damage insurance.

Risk of Loss. Confirm that buyer is covered by insurance upon closing of
the transaction or upon taking possession if that occurs prior to the closing
[Important!].

Preparing for the Closing.

Obtain UCC Search Results with respect to any personal property interests
included in the transaction. Also obtain copies of all bills of sale and
evidence that personal property will be assigned to the buyer free of all liens
and security interests.

Fund Transfer. Arrange for the transfer of funds.

Title Insurance. Confirm that title insurance arrangements have been made;
obtain details for recording documents, notary requirements, etc.

Closing Documents. Early in the process, prepare a checklist of closing
documents. Closing documents often include the following:

• Purchase
  Agreement
• Deed
• Bill
  of Sale. Consider whether separate bills of sale should be obtained for any of
  the personal property
• UCC
  Search. If any existing liens are to be terminated, obtain evidence of
  termination
• Current
  rent roll of for the property
• Originals
  of leases and other tenant
• Assignment
  of leases (and arrangements for transfer or credit of security deposits)
• Tenant
  estoppel certificates
• Notices
  of transfer, to be sent to tenants upon closing
• Originals
  or copies of service contracts and any warranties or guaranties with respect to
  the property
• Assignment
  of service contracts, warranties and guaranties
• Originals
  or copies of building permits, certificates of occupancy, and similar items for
  the buildings and tenant-occupied space
• Complete
  set of the as-built plans and specification for the improvements
• Documents
  relating to any existing or new financing on the property (e.g., mortgagee statements,
  loan documents, etc.). If existing financing is to be paid off, arrange for
  release of liens
• Opinions
  of counsel, if any
• Title
  insurance policies and special endorsem*nts, if any.
• Survey
  of the property
• Insurance
  policies
• Inventory
  of personal property
• Keys
  and other items used in connection with the operation of the property
• Escrow instructions
• Closing statement to be
  prepared by the escrow company

Hire the services of an expert

Hire
the services of an experienced Midvale Utah real estate lawyer. The lawyer can
assist you with the entire process. The lawyer will conduct a due diligence on
the property to ensure that you get the property without any attached liability
or lien. Don’t take chances. It’s your hard earned money that you are going to be
investing in the property. It’s important for you to be protected as the buyer.
Remember once the sale transaction is closed, you will be the legal owner of
the property and you will be liable for any taxes or liens on the property.

Midvale Utah Real Estate Attorney Free Consultation

When you need legal help with a real estate matter in Midvale Utah, please call Ascent Law for your free consultation (801) 676-5506. We want to help you.

Ascent Law LLC
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506

from Michael Anderson https://www.ascentlawfirm.com/real-estate-lawyer-midvale-utah/