Originally Published on March 31, 2021--------- Updated May 24, 2023

One of the most frustrating aspects of a real estate transaction is interpreting legalese and real estate jargon. In this popular blog, we explain the difference between a title and a deed. Essentially, having the title to a home gives you legal authority over the home. One or more parties may hold the title to a real estate property. On the other hand, a deed is a physical document that shows proof of ownership.  

If you are planning to buy or sell real estate, make sure you fully understand your rights and responsibilities. Whether it is a residential property or a commercial property, real estate transactions are loaded with complicated language and complex legal paperwork. Unfortunately, real estate transactions rarely go as smoothly as one would hope.

Your home is likely the most valuable asset you own, both in the financial sense and a personal sense. When problems such as leaky roofs, cracked foundations, and unsafe electrical systems arise due to substandard construction, it can be extremely frustrating and very expensive. In some cases, construction defects like these may even put your and your family's lives at risk. 

Shoddy construction work lessens the value and functionality of your real estate property. It is important to take swift action to protect your rights and hold the at-fault party responsible.

Poor Workmanship and Mistakes During Construction Can Cost You Dearly

When a homeowner hires a construction company or contractor to do work on their property, they have certain expectations, including having the job done on time and within budget, as well as to a certain standard of quality. Unfortunately, mistakes can be made during construction that result in serious flaws and dangerous conditions.

The pandemic changed countless aspects of our society, including the process of evicting a tenant from a rental property. Because so many people were unable to work during the pandemic, special protections, including eviction moratoriums, were put in place to prevent renters from being evicted from their homes.

These measures were designed to prevent additional hardships for tenants already facing major challenges. However, landlords often found themselves in a difficult situation when it came to dealing with tenants who could not pay their rent. The moratorium on forcible entry and detainer actions has been lifted, but landlords still face substantial challenges in 2023.

The good news is that landlords have rights during an eviction process. If you are a landlord, you do not have to tolerate non-payment of rent, illegal use of property, and other lease violations. However, you do need to follow specific procedures when taking legal action or evicting a tenant.

If you are in the process of buying or selling a home, you may be wondering what to do if you come across a mechanic's lien during your transaction. A mechanic's lien is a claim that a contractor or subcontractor has against a property for unpaid work. If you are the buyer, this can be a huge problem because it means that the property you are interested in purchasing may have a debt attached to it. If you are the seller, a mechanic's lien can also complicate things because it may reduce the amount of money you ultimately receive from the sale.

What is a Mechanic’s Lien? 

A mechanic's lien is a claim that a contractor or subcontractor has against a property for unpaid work. For example,  if you hire a contractor to build a deck and the contractor is not paid for their services, they may put a mechanic's lien on your property. This means that if you try to sell your home, the contractor can come back and claim the money they are owed out of the proceeds from the sale. Unfortunately, some homeowners find themselves facing mechanic liens even if they believe they have already paid their contractor in full. 

Addressing Mechanic’s Leins During Residential Real Estate Transactions 

If you are selling your home, but there is a mechanic’s lien on the property,  the first thing you should do is try to negotiate with the contractor who placed the lien. You may be able to come to an agreement about how the debt will be paid off so that it does not interfere with your sale. Work with an attorney who can advocate on your behalf during negotiations and provide the step-by-step guidance you need. If you are buying a home and there is a mechanic's lien on the property, you may need to work out an agreement with the seller about how the debt will be paid before you can close on the home. 

Most experts agree that it is a seller's market. Homes are in great demand, supply is low, and house prices are skyrocketing. If you are like many people, you may be interested in selling your home. However, selling your home is a major undertaking and it can be easy to make mistakes or overlook responsibilities. As you prepare to sell, consider the following suggestions.

Choose an Experienced Real Estate Agent

It is possible to sell your home without a realtor. However, there are many serious risks associated with "for sale by owner" transactions. Usually, these risks outweigh any potential cost savings associated with an FSBO sale. Real estate agents have access to large networks of potential buyers and ample experience with the home selling and buying process. Your agent can help you identify unqualified buyers and negotiate the best price possible.

Retain a Skilled Real Estate Lawyer

In addition to your agent, you should also consider retaining a knowledgeable real estate lawyer. Selling your home is most likely one of the largest and most consequential financial transactions you will ever make. A real estate lawyer will help you ensure all agreements and contracts are executed properly and do not contain errors or omissions. Your attorney can conduct due diligence and attend the real estate closing with you. If unexpected disputes or legal problems arise, your attorney will be there to handle it.