Legal Considerations for Buying and Renting Malibu Homes

The real estate marketing in Malibu is a competitive one, pitting renters and buyers against each other in the race to make the best offer. Before buying Malibu land for sale or signing the lease on an apartment, however, buyers and renters need to protect themselves. There are several legal considerations you must be aware of if you plan to rent or buy a property in Malibu.

Insurance

If you have to get a mortgage to buy a house or condo, the lender will insist that you carry an insurance policy on your new home. This type of insurance policy can reimburse you for the loss of damaged property or cover you in the event that an accident occurs in your home. You should also consider purchasing special coverage for natural disasters since Malibu has had a number of wildfires and is in earthquake-prone California. Renters can also purchase insurance to cover their assets, but rental insurance is different from home insurance. It insures the contents of your apartment and may cover you in the event that someone sustains an injury because of your actions. However, your landlord should maintain property insurance for the building you live in, as rental insurance will not cover damage to common areas.

Title insurance is another important consideration for anyone buying Malibu beach homes or condos. When you purchase a property, you need to make sure that the seller has a clear title. Purchasing title insurance protects you in case the seller’s title is not good. Your title insurance company will issue a title insurance commitment that details who owns the property, whether there are any property use restrictions and whether there are any liens against the property. An experienced attorney should review this document before closing.

Contract Law

Working with an experienced real estate agent can help you avoid some of the hassles of renting or buying a home. The field of real estate law relies heavily on contract law to make sure that both buyers and sellers are protected. A real estate contract is used if you are buying or exchanging real estate with another property. Leases, also known as rental contracts, are used if you rent a property from a landlord. Both contracts are usually bilateral, which means they are agreed to by both parties. A contract or lease should have several pieces of information in writing. They include the parties agreeing to the contract, the address and description of the property, the purchase price or rental fee and signatures of both parties. These contracts are void if they involve minors or those deemed incompetent due to mental impairment or drug use.

Offer to Purchase

If your interest is in Malibu homes for sale, you will need to submit an offer to purchase once you find the home of your dreams. This offer states the price you are willing to pay for the house and details other terms of the transaction. The offer to buy a home is usually contingent upon the house passing a professional inspection and the buyer being able to secure financing. Other considerations include land surveys, well inspections and septic inspections. If the home inspection yields any property defects, the buyer and seller can negotiate on repairs or a reduction if the selling price.

Russell Grether of Compass Real Estate is a real estate agent based out of Malibu, CA. He specializes in Malibu real estate, Malibu homes for sale, Malibu properties, Malibu land for sale, Malibu rentals and surrounding area real estate from Montecito to the Pacific Palisades.