Legal Obstacles You May Face When Buying a House


Real estate is a risky investment that can be both stressful and time-consuming. If you’re wondering whether it’s worth the hassle, here are some of the legal issues you may encounter when buying a house.


What are the Legal Issues with Buying a House?

There are many legal issues that you may face when buying a house, such as zoning laws, title issues, and land ownership.

  • Zoning laws control the type of housing that can be built in a given area, and they can vary greatly from city to city. If you’re purchasing a home that is located in an area that is not currently zoned for residential use, you may need to get special permits from the local government.
  • Title issues concern the ownership of the property itself. If you’re buying a home that has been foreclosed on or is in foreclosure status, the bank or mortgage company may still have legal rights to it. You’ll need to contact the relevant party and explore your options carefully before making any purchases.
  • Land ownership can also be a problem if you’re purchasing a home that is located on property that is owned by someone other than yourself. In order to purchase this type of property, you’ll likely need to get permission from the owner(s) and enter into a binding agreement with them.

Protecting your investment

When you purchase a house, you are making an investment. Protecting your investment is important, both financially and legally. Here are some tips to help protect your house:

  1. Have a contract: When you buy a house, make sure you have a written contract specifying the terms of the sale. This will help avoid any misunderstandings or disputes down the line.
  2. Get documents checked: Make sure all relevant documents – such as title deeds, zoning permits, and mortgage papers – are in order before closing on the property. A mistake can lead to delays or even lost money on your purchase.
  3. Get insurance: House ownership comes with certain risks, including potential damage from natural disasters (like earthquakes) or criminal activity (such as burglary). Make sure you have insurance coverage for both major events and everyday risks like fire and theft.
  4. File taxes correctly: Property taxes, mortgage interest payments, and other expenses associated with owning a home can add up quickly – so be sure to file taxes and other paperwork properly each year to avoid penalty fees or penalties on your property value.
  5. Follow state laws: Each state has its own rules governing how houses may be bought and sold, so be sure to know what’s legal in your area before making any commitments. If something goes wrong later on down the road, knowing your rights could mean the difference between getting relief from your lender or facing significant financial penalties yourself. If you are not sure you can find all the info by yourself, Prior Lake Law can help you with all the legal issues.

Understanding the Mortgage Terms

There are a number of key terms that are important to know, including the interest rate, term, and mortgage payment. The interest rate on a mortgage is the main factor that affects how much money you will pay over the life of the loan. The longer the term of the loan, the higher the interest rate will be. Terms range from as short as two years up to 30 years. A shorter term means that you will have to repay the loan sooner, and therefore you will pay more in total interest payments over the life of the loan.

The mortgage payment is made every month and covers both principal and interest payments on your loan. The amount of your monthly payment will depend on several factors, including your down payment and how much debt you are taking on with your new home purchase. It is important to keep in mind that even if you make only minimum monthly payments, your debt will still grow over time and could become difficult to repay.


Your Credit Score

If you’re thinking of buying a home, your credit score will likely be one of the most important factors in your decision. Here’s what you need to know about your credit score and how it impacts your ability to purchase a house:

Your credit score is a number that reflects your credit history and financial stability. The lower your score, the more difficult it will be for you to obtain financing for a home purchase. You can improve your credit score by paying all of your bills on time, maintaining low balances on your accounts, and avoiding any delinquent or high-interest loans. You can also try to get approved for a loan even if you have a low initial credit score – as long as you can afford the monthly payments. If you’re already living in a home and would like to buy another one soon, getting approved for an affordable mortgage could make the process much smoother.


Applying for Homeowners Insurance

The Down Payment: In most cases, you need 20% of the purchase price or more down payment. This means putting down money upfront before your loan is approved. Make sure to ask your lender about restrictions on how much down payment they will allow you to make.

The Inspection: Before you sign any paperwork, it’s important that all of the necessary inspections have been completed, including a home inspection and a flood inspection. Not having these done can result in delays and increased costs later on.

Closing Costs: Closing costs can really add up when you’re buying a home. You may need to pay for title insurance, real estate taxes, and other fees associated with buying a house. Make sure to budget for these costs and ask your lender about possible discounts available.

Maintenance & Repair Bills: When you buy a house, it’s important to know that you’ll be responsible for maintenance and repair bills from day one – even if the seller was supposed to do them! Make sure to read the disclosures provided when you view the property so that you’re aware of any additional costs involved in owning this property long-term.


Buying a house is an important decision, and it can be stressful to navigate all the legal obstacles that may stand in your way. If you’re not careful, buying a house could become quite costly and time-consuming, which isn’t something you want to go through if you can avoid it. Armed with the right information, you can make sure the process goes smoothly.