All That Documentation Makes Real Estate No Fun

by : Ajeet Khurana

There are many investment opportunities available to us all. The usual suspects are stock market investment and bullion. Then again, the more adventurous kinds would invest in art, comic books, vintage wines and the like. But I think that the bravest kind of investor is the one that invests in real estate. What do you think?

Would you say that you can transact in real estate? If yes, you must hate the documentation. Invariably, I did

Large prices are a hurdle. But that is not the only big hurdle. I would say that the very fact that you have to go through so much of documentation is also a huge impediment.

I find myself reeling under all this work. I think of it as necessary evil because, though irritating, it is probably necessary in some situations.

One of the most common types of document is the "Offer to Purchase." As is implied by the very name, this is the letter that you would use to make an offer to someone when you are interested in buying his or her property. Of course, you need to know all the details that should be mentioned in this doc. You should also be careful about the legal implications and binding nature of this form.

Then there is the Residential Lease Agreement. This is something that a large number of us get exposed to. For some reason or the other if you have relocated, you have quite likely rented an apartment or a home. There are severe regulatory issues that go into making a lease agreement. So make sure that you are clear about all those matters before you go ahead and finalize the contract.

Like all other legal documentation, the contents should make logical sense. But there is a little beyond that too. For instance when it comes to matters related to real estate, there are often covenants that are local to different geographies and territories.

In reality there are hundreds of documents.

And if that is not "exciting" enough, please look forward to the likes of: 30 Day Notice, Counter Offers, Extension Of Lease Contract, Land Contract Form, Land Contracts, Promissory Notes, Quit Claim Deed, Rental Application.

Real estate is not for everyone. Often you might find all this unnecessary. But there is so much at stake that people are willing to suffer silently.

If you have the right resource and guidance you can make it through.