If someone was planning on buying a condo in full (no mortgage needed, already has the exact amount in cash/check), would they still need a lawyer? And would they still do a credit check, esp if the buyer doesn't have credit or has bad credit?
2007-06-25 08:25:51 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
The only time you would need a credit check is if the condominium is set up as a co-op. The difference between a co-op and a condo is that in a condo you're purchasing the airspace in your unit and a undivided portion of the buildings, land, and amenities. In a co-op, you're purchasing shares in a corporation and get a proprietary lease for your unit. Boards of co-ops have the right to do credit checks and background checks and usually interview people before letting them buy in.
If you are purchasing a condo, especially when paying in cash (where you have a lot invested in it), you absolutely should get a lawyer. Protect yourself - spend the money for an appraisal and a home inspector and title insurance, too.
Get a copy of the budget and the most recent financial statement. Do they have enough in their reserves? If not, you might be hit with a huge assessment to do needed repairs. If you can't come up with the assessment, you would be perfect for foreclosure because you have no mortgage - the association could make a nice profit on you!
You should be much more careful than the average buyer. The average buyer has a mortgage company to semi-check to see if it's a worthwhile investment.
2007-06-26 02:24:22 · answer #1 · answered by Lauren 3 · 0⤊ 0⤋
If you are buying in full , you are not borrowing any money --so they would have no need to verify credit score. Credit checks are down when you are being lent something. I would still advise you to get a laywer, although they two are not needed on a straight cash deal. But there is still alot of small print and legal issues that you might want their help with.
2007-06-25 15:55:04 · answer #2 · answered by Anonymous · 0⤊ 0⤋
No credit check, but you'd still want to use a title company or real estate attorney to handle your side of the closing. And buying title insurance is still highly recommended. As of course is getting an appraisal.
Just to make sure they aren't just going to take your check and run without giving you the home you're supposed to be buying.
2007-06-25 16:03:20 · answer #3 · answered by Yanswersmonitorsarenazis 5 · 0⤊ 0⤋
Yes will need a lawyer. Credit checks are not needed. All you have to have is a certified check at the closing.
2007-06-25 15:30:41 · answer #4 · answered by regerugged 7 · 0⤊ 0⤋