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Eva Swersey

7 Legal Considerations When Selling Your House: What You Need to Know



Selling your house is exciting, but there’s definitely a lot to juggle. Among all the decisions and to-dos, there are several legal considerations that can prevent any headaches down the road and ensure the sale goes off without a hitch.


Here’s a breakdown of the main legal things to keep in mind when you’re ready to sell:


1. Property Disclosures: Honesty Is the Best Policy

When you’re selling, you have a legal obligation to disclose any known issues with the house—think structural problems, water damage, or that sneaky termite situation. Most states require you to fill out a disclosure form to share this info with potential buyers. If you skip this step or hide anything major, you could end up in hot water down the road. Bottom line: be upfront to avoid future disputes.


2. The Sales Contract: Read the Fine Print

The sales contract is where all the details of your deal get locked in—price, closing date, contingencies, you name it. Make sure you read it carefully and understand everything before you sign. If you’re not sure about something, it’s always a good idea to have your real estate agent or a lawyer take a look. Keep an eye on contingencies, like the buyer needing to secure financing or complete inspections. These can impact the timeline and overall sale.


3. Title Issues and Liens: Clear It Up Before You List

Before you put your home on the market, make sure there are no title issues or liens (like unpaid taxes or loans) hanging over your property. A title search will reveal any red flags that could slow down the sale.If you do have liens, you’ll likely need to settle them before moving forward. The goal is to have a clean title so the sale doesn’t hit any snags.


4. Real Estate Taxes: Know What You Owe

When you sell your home, you could be on the hook for capital gains tax on the profit—especially if you’ve owned the house for less than two years. But there’s good news: if you’ve lived in the home for two out of the last five years, you might qualify for an exclusion and avoid paying taxes on a portion of the sale.It’s worth chatting with a tax pro to figure out what you owe and whether you can minimize your tax bill.


5. HOA Regulations: Don’t Forget the Fine Print

If your home is part of a homeowners association (HOA), there may be specific rules for selling. Make sure you review the HOA’s documents to find out if you need to notify them of the sale or get approval for the new buyer.And be ready to provide buyers with info on the HOA—things like fees, rules, and any upcoming assessments they’ll need to know about.


6. Closing Process and Fees: The Final Stretch

Closing is the finish line, but there’s still a lot to get through—signing paperwork, transferring the deed, reviewing the settlement statement, and more. Be prepared for closing costs, which can include agent commissions, transfer taxes, title insurance, and attorney fees. Knowing these costs ahead of time will help you plan your finances and avoid surprises on closing day.


7. Post-Sale To-Dos: Tie Up Loose Ends

Even after the sale is done, you might still have some responsibilities. If you agreed to handle any repairs or there are lingering disputes, make sure you follow through to avoid legal trouble.And don’t forget to keep copies of all the paperwork—you’ll need it for taxes or just in case any questions pop up down the line.


Ready to Sell? Let’s Talk!

Selling a house is more than just putting up a “For Sale” sign. By staying on top of these legal details, you’ll avoid any bumps in the road and have a smoother sale. If you have any questions or want help navigating the process, schedule a 30-minute conversation - I’m here to help!

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