Frequently Asked Questions:

Q: Why do I need a real estate lawyer?

A: There are professionals who can help you with the purchase of a home and offer direction on what you should consider:A real estate agent can advise you on the marketplace and what is available in your price range, as well as help you to consider aspects of a home which may be important to you (such as nearby schools, shopping, and commuting options) An accountant or mortgage loan officer can help you determine what kind and amount of mortgage payment you can afford and alert you to the estimated property taxes which would be owed annually. A loan officer can also help you pre-qualifying for a real estate loan. A homeowners insurance agent can provide information on the amount, type and cost of coverage you'll likely need

However, a real estate lawyer can make sure that the terms of the most important document of any real estate transaction, the purchase agreement, are complete and protect your rights and interests. That is we strongly recommend that both a seller and a buyer consult with an attorney from John R. Tatone & Associates BEFORE signing a purchase agreement.

An attorney may assist you with all aspects of the transaction from beginning to end which may include the following:Drafting and/or review and/or revision of an offer to purchase Drafting and/or review and/or revision of a Seller's Disclosure Statement Activities related to the procurement of a certificate of occupancy Review and/or revision of mortgage documents Drafting and/or review and/or revision of a land contract Drafting and/or review and/or revision of a bill of sale Drafting and/or review and/or revision of a closing statement Review of a commitment for title insurance and/or activities related to the clearing of title Drafting and/or review and/or revision of warranty deed or quit claim deed Drafting and/or review and/or revision of escrow agreements Drafting and/or review and/or revision of affidavits Telephone calls and/or correspondence with realtors, purchasers, sellers, title company representatives, mortgage company representative, tax authority representatives and others Appearance at closing Recording of a deed and/or related documents with the register of deeds

Q: Should I consider buying a home in foreclosure?

A: Purchasing a home in foreclosure often appears to be a good value, but factors outside of the price need to be considered:The purchase of a foreclosure often is a "cash only" sale. Can you view the actual condition of the home inside and out before placing a bid? The home may be in need of extensive repairs driving up the actual cost of the home. Are there liens for taxes or mechanics liens that the winning bidder will be responsible for? Is there a redemption period for the previous owners? If so, how long do they have the ability to buy the house back before you can move in?

Q: What questions should I ask when looking at homes?

A: Many of your questions should focus on potential problems and maintenance issues. Does anything need to be replaced? What things require ongoing maintenance (e.g., paint, roof, HVAC, appliances, carpet)? Also ask about the house and neighborhood, focusing on quality of life issues. Be sure the seller's or real estate agent's answers are clear and complete. Ask questions until you understand all of the information they've given. Making a list of questions ahead of time will help you organize your thoughts and arrange all of the information you receive. The Department of Housing and Urban Development (HUD) Home Scorecard can help you develop your question list.

Q: What is a purchase offer?

A: A purchase offer or agreement contains all the details of the offer to purchase a piece of property. An agreement is binding only once the document has been agreed to and signed by the buyer and seller. Often in the purchase of real estate, there are a number of offers and counter offers until an agreement is reached. Items and conditions that are often included in the purchase agreement include:Description, legal and common, of the property Purchase price Amount of earnest money or down payment Features and fixtures which are to remain Home inspection results Anticipated financing Closing date Final inspection and move-in condition Penalties for breaking the offer Response time to accept the offer Obtaining clear title to the property Clean inspection report

Q: What good is title insurance?

A: A title search and the issuance of title insurance means the ownership of the property can be cleanly conveyed to the new owners. During the search, the history of the property is researched verifying that all previous claims or liens have been satisfied, allowing a clear title to be issued. If any claim is overlooked, the title insurance protects the owner from the claim. Remember that if it's not in writing on a real estate deal, it's not enforceable.

Q: Why is a deed required?

A: A deed transfers ownership of property from one owner to the next. Deeds are recorded in the county where the property is owned. There are two types of deeds in Michigan:Warranty deed - which guarantees no other person owns or has claims against the property Quit claim deed - transfers interest in a piece of property from one owner to the next. A quit claim deed provides no guarantee from other interests or claims

Q: Can my Social Security (SSA) or Supplemental Security (SSI) benefits be garnished? 

A: SSA and SSI  benefits are exempt from garnishment except for child support, alimony  and debts owed the federal government such as back taxes.  However, the exemption doesn’t happen automatically.  The burden is on you to object if a creditor attempts to garnish an account containing SSA or SSI payments.  Generally garnishment can only be attempted if your creditor has sued you and there is an unpaid court judgment.  (If you owe money to the bank or credit union where you deposit your checks they may access that money without a court judgment.)  A creditor can attempt to garnish your bank or credit union account if a judgment is not paid within 21 days.  You are supposed to be given notice and 14 days to go to court and prove the money in the account is exempt.  If you don’t get into court within the time limit the SSA or SSI benefits can be garnished.  Even if you do meet the time limit to object to garnishment the account will probably be frozen until the court makes its decision.  This means you might not have access to your income for a number of weeks. For this reason, if you are sued you may want to have your SSA or SSI check sent direct to you rather than deposited in a financial institution. You would then cash the check immediately and pay your bills in cash or money order with receipts

Q: Am I responsible for my spouse’s personal debts? 

A: Michigan law does not make you responsible for your spouse’s individual debts just because you are married.  You would be responsible if you agreed to be, for example by cosigning a loan.  If your spouse has died and left a probate estate or trust then his/her creditors must be paid before family members (with the exception of some set family allowance amounts).  If you owned assets jointly they passed automatically to you at death and are not subject to  your deceased spouse’s  individual debts.

Q: Can I sue a driver who damaged my car in an accident? 

A: Under Michigan’s no-fault insurance law your own collision coverage is supposed to pay for damages to your car no matter who is at fault in an accident. This means you probably will be personally responsible for damages to your car if you have not purchased collision coverage.   If the other driver had no-fault insurance then the most you can sue for is $500 in out of pocket expenses such as a deductible that you had to pay. This $500 limit is referred to as “mini-tort”. To win you must prove the other driver was 50% or more at fault.  If the other driver was not insured you can sue for the full amount of your out of pocket expenses. The actual amount of your money damages will be based on the other driver’s percentage of fault.    You can sue in small claims court for damages of $3000 or less. To collect on a court judgment you can garnish bank accounts or wages and ask the Secretary of State to revoke the other driver’s license until the judgment is paid (the court can allow installment payments).

DISCLAIMER: MATERIAL PRESENTED ON THE JOHN R. TATONE & ASSOCIATES, PLC WEBSITE IS INTENDED FOR INFORMATIONAL PURPOSES ONLY.  IT IS NOT INTENDED AS PROFESSIONAL ADVICE AND SHOULD NOT BE CONSTRUED AS SUCH.