Pursuing Off-Market Real Estate Transactions
In Washington State, most home sales involve publicly disclosed and advertised transactions. They often start with listings on the Northwest Multiple Listing Service (NWMLS) and end up with buyers and sellers entering into purchase and sale agreements with the assistance of their respective real estate brokers. Although rife with risks, some of which we have discussed here and here, these “on-market” sales, for lack of a better term, are the standard process for buying and selling homes.
Sometimes, prospective real estate purchasers and sellers, however, wish to engage in off-market transactions without public advertising. For example, these transactions might occur when a landlord wishes to sell a rental property to the occupying tenants. These transactions might also occur between family members or friends. Indeed, sometimes a potential purchaser might even cold contact a homeowner, who then determines that the prospect of an off-market sale is desirable. Often times, these types of transactions will also involve seller financing, a topic which I discussed previously here.
Buyers and sellers engaged in the purchase and sale of real estate off-market may want to avoid the formalities commonly associated with real estate transactions, and indeed, will often try to avoid paying commissions by conducting the transactions without brokers. After all, many buyers and sellers may find the concept of paying commissions unfair if they found each other without the assistance of real estate brokers. Rightly or wrongly, many home buyers and sellers consider a chief function of real estate brokers to be “finding” the right transaction.
However, off market sales can still involve many of the same risks and hurdles as standard sales, including obtaining and analyzing title policies, navigating through inspection issues and repair concerns, opening escrow, and more. Real estate brokers can often help buyers and sellers navigate through some these matters. Yet where real estate brokers must stop short is where legal concerns arise before or during the transaction, or where legal analysis of documents such as easements or covenants is needed. These various legal complexities can take a multitude of forms.
A good real estate attorney, however, can often provide significant assistance not only when legal issues arise related to “on-market” transactions, but also where buyers or sellers need beginning-to-end guidance for an off-market transaction, including assisting with matters like seller financing. Indeed, a knowledgeable lawyer can often address many duties typically handled by brokers in off-market transactions. This can often be done without charging commissions, and it benefits clients who can simultaneously obtain services for the transaction and legal knowledge about any complexities that might arise. While one size does not fit all, and sometimes utilizing a broker for off-market transactions may make good sense, the prospect of hiring a lawyer to assist with such transactions is often favorable.
The lawyers at Beresford Booth have significant experience with representing buyers and sellers in purchase and sale transactions, both standard and off-market, as well as with the disputes that can arise in relation to those transactions. If you need assistance with, or have questions about, real estate transactions, please feel free to contact Beresford Booth at info@beresfordlaw.com or by phone (425) 776-4100.
