LAND BUYING: DO'S AND DON'TS

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Furthermore, keep in mind that—when you do put down earnest money—you'll be allowed to make the final purchase dependent upon written contingencies. Just what these qualifications are will be up to you, but do be sure that your earnest money agreement covers legal access, mineral rights, timber, and water, and that it requires the seller to deliver to you a deed conveying good title. And be certain to obtain a title search (which will tell you the legal history of the property), so that you know what encumbrances—if any—are on the land and can be sure that the seller does, in fact, own the property.

Make sure, too, that any money given to the seller goes into an escrow account and will be returned if the owner can't convey good title. Don't leave this up to chance . . . insist on such an agreement. I met a man who lost his paid—for property, and a good bit of money, because he didn't take this simple step. And if there's an underlying contract or mortgage on the property, get a statement in writing that it's being paid—or that you're making provision to assume it—because if this isn't specified, the holder of the mortgage has prior claim.

Additionally, you should invest in title in surance, and read that policy carefully in order to understand exactly what it says. (It will, for one thing, list whatever encumbrances are on the land.) Also be sure to get the transaction recorded at the public registry (which may or may not be at the county courthouse . . . ask your local officials). You may, after the purchase, be able to further protect yourself by filing a Petition of Homestead. [EDITOR'S NOTE: See the article on this subject in MOTHER NO. 76, page 81. Information on ordering back issues can be found on page 48.]

You will, of course, be faced with a lot of "legalese" when buying property. It'll be necessary, for example, to become familiar with such terms as binders (often called offers to buy or deposit receipts), mortgagor, mortgagee, graduated payment mortgage, variable rate mortgage, mortgage clause, refund clause, maintenance clause, lien, settlement clause, loan origination fee, loan discount (or points), foreclosure, quitclaim, and acceleration clause. (An acceleration clause, for example, causes the entire debt to become due should one installment payment be late, and it's definitely not something you'd want in your mortgage.)

Be sure, then, to consult a legal encyclopedia or dictionary whenever you come across a term that isn't absolutely familiar to you, and to find out from a competent real estate lawyer exactly how that term is interpreted in your particular agreement.

COMMUNITY ATTITUDES

Finally, study the area you plan to live in as thoroughly as possible. The time spent on this research can be critical to your future peace of mind. It's amazing what a few miles can sometimes mean in terms of personal happiness and opportunity.

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