The citizen. (Honesdale, Pa.) 1908-1914, 1911-03-17
MORE THAN MONEY NEEDED IN
PURCHASING A HOME.
Legal Routine In Buying House
Made Clear To the Lay Mind.

Legal Routine In Buying House
Made Clear To the Lay Mind.
The numerous legal requirements
in taking title to a house are liable
to bewilder the average person who
is contemplating the purchase of a
home. There is however, regular
process, which, while appearing very
complicated, is in reality simple
legal method for perfecting his title
to the property.
In the purchase of home the av-
erage method is somewhat like the
following, according to the Altoona
Mirror. The person having selected
the home which he desires, calls up
on the builder and the purchase
price is determined upon. The next
thing to be settled is the question
of financing the purchase. When
all this is settled an agreement of
sale is prepared in which is specifi-
cally set forth, the purchase price
and the manner in which the mort
cages are to be provided for. These
agreements are signed by the owner
and purchaser, and usually provide
! for settlement within 80 or 60 days.
! 1t Is customary to make a deposit
of either 500 or 5000 at the time of
! signing the agreement and this
amount Is, of course, deducted from
the amount to be paid when settle
ment is effected.
Preparing The Papers.
AS soon as this portion of the
agreement is completed the prepara-
tion of the deed and mortgages, the
taking out of title insurance and the
investigation of the title begins. The
issuing of title insurance is the great.
est safeguard to the purchaser, as or
the payment of stipulated amount
the purchaser Is given a guarantee
backed up by any of the big trus
companies, to protect him from loss
if it at any time in the future flaw
in the title is discovered. For tha
reason no purchase of a home should
be made unless there is provision fol
title insurance.
After all these preliminaries are
completed day for settlement i!
: agreed upon, and when the pur
chaser presents himself, either at hi!
lawyers office or that of the build
er or at trust company, he get
mis- first insight into the legal re
quirements of a real estate transac
ton. If, for illustration, he ha
purchased a home for $500, OF
which he is to pay $500 in cash, tn,
balance to be secured by first NOR
tgage for $4,000 and a second on
, for $1,000, it will be necessary 70
him to sign two mortgages and tw,
bonds.
This is where he will get his frs
! shock, because if he is a careful mai
the complicated phraseology will b
apt to confuse him, especially so ia
as the bonds are concerned, becaus
T in reading these documents he vii
, discover that he declares himsel
firmly bound unto the mortgage
(the person who loans the money
!, in the sum of $4,000 on the frs
a mortgage and $4,000 on the secon
= mortgage, although further down i
o the same documents is the previsio
q that on the payment of either 50
q 600 or 81, 200 the obligation shall b
! entirely void.
p These legal instruments are only
n relic of olden days, but are still use
y and the purchaser need not concer
6 himself about the matter, as he wi
only be obliged to pay the amount c
, the mortgage and not the amour
that he holds himself responsible fc
in the bond.
:, After these papers are signed tn
/ actual settlement takes place whe