Post hurricane real estate deals can come with hidden costs
Although damaged homes can be a deal, buyers should be aware of various potential hidden costs and the role an attorney can play in mitigating the financial risks associated with the purchase.
April 24, 2013
Post hurricane real estate deals can come with hidden costsArticle provided by The Law Offices of Allison B. Crain & Associates
Visit us at http://www.crainlaw.com
Hurricane Sandy came ashore in New Jersey on October 29th of 2012. This hurricane was unique and caused serious damage throughout the northeast. One uncommon aspect of this storm was the fact that it merged with a second, powerful storm that was moving in from the west. The second storm brought cold winds that collided with Hurricane Sandy's warmer winds resulting in destructive, cyclonic winds that expanded much further than typical hurricanes.
In addition to wider reaching, powerful winds, Hurricane Sandy also changed the coastline throughout the east coast. During the storm, strong winds pushed the waters of the Atlantic Ocean toward the coast, causing flooding throughout the northeastern portion of the United States. Heavy rainfall added to the flooding, damaging homes throughout the region.
Due to the damage, buyers are finding deals on real estate in areas hit by Hurricane Sandy. Purchasing a home is often the largest expense a person incurs during his or her lifetime. The large expense and unique factors of purchasing hurricane damaged property can put buyers at risk for taking on unforeseen costs.
Role of a lawyer in real estate transactions to avoid unforeseen costs
A lawyer can help buyers avoid unforeseen risks by taking on many roles during a real estate transaction. One important role is the ability to review contracts to ensure they are tailored to each individual piece of property. Real estate agents often use standardized forms that cover a number of potential legal issues. Unfortunately, these forms often neglect to cover various potential problems.
Homes in these areas may have unforeseen risks not covered in these standardized forms. One example involves changes that were either already made to the structure of the damaged property or changes that may need to be made in the future. An attorney can help buyers determine if the purchase agreement addresses whether changes made to the property were done lawfully or if future changes intended by the buyer can be lawfully completed.
The storm also brought about new concerns for buyers, including changing flood maps. Knowing how the flood maps will be adjusted is important, since this can have a large impact on the cost of homeowner's insurance. Homes that are within the flood plan often have higher insurance costs.
These are just a few issues that home buyers can encounter when purchasing hurricane damaged homes. Because of the wide range of legal implications that can be involved, those looking to purchase homes in these areas should consult with an experienced real estate attorney to better avoid unforeseen costs and help ensure their rights are protected.