Liberty Property Solutions

Reference Library

Major Real Estate Laws

The federal and state statutes that shape every home and land sale in America, and exactly how each one affects a direct cash closing with Liberty.

Not legal advice. This overview is for general education. Specific transactions vary by state and situation. Always confirm with a licensed attorney, title officer, or CPA before acting on any of the topics below.
  1. 01

    Federal

    Fair Housing Act (1968)

    Prohibits discrimination in the sale, rental, and financing of housing based on race, color, religion, sex (including gender identity and sexual orientation), national origin, familial status, or disability.

    Why it mattersEvery purchase we make is evaluated on the property, not the seller. We do not discriminate against any protected class in our offer, negotiation, or closing.
  2. 02

    Federal

    Real Estate Settlement Procedures Act, RESPA (1974)

    Requires transparent disclosure of settlement costs, prohibits kickbacks between service providers, and regulates escrow and servicing on federally related mortgage loans.

    Why it mattersOur closings are documented through a licensed title company or closing attorney. Every fee is itemized on the settlement statement, no hidden charges.
  3. 03

    Federal

    Truth in Lending Act, TILA (1968)

    Requires lenders to disclose credit terms clearly so borrowers can compare offers. Applies whenever consumer credit is extended for real estate.

    Why it mattersOur cash purchases don't require you to obtain financing, so TILA disclosures don't slow the deal. If you have an existing mortgage, we coordinate the payoff cleanly at closing.
  4. 04

    Federal

    Dodd Frank Wall Street Reform Act (2010)

    Restructured mortgage lending, created the CFPB, and imposed ability to repay rules on residential mortgage originators, including some seller financed transactions.

    Why it mattersWhen a seller wants a portion of the sale financed rather than paid all cash at close, we structure it in compliance with Dodd Frank's seller finance safe harbors.
  5. 05

    Federal

    Foreign Investment in Real Property Tax Act, FIRPTA (1980)

    Requires buyers to withhold a percentage of the sale price when the seller is a foreign person, remitting it to the IRS to secure any capital gains liability.

    Why it mattersIf you're a non U.S. seller, we handle FIRPTA withholding through the title company so you meet IRS obligations and the closing wire is correct on day one.
  6. 06

    Federal (Tax)

    IRS Section 1031, Like Kind Exchange

    Lets an investor defer capital gains tax by reinvesting the proceeds of an investment property into another like kind property, subject to strict 45 day and 180 day deadlines.

    Why it mattersSelling to us as your relinquished property can meet 1031 timelines because we close reliably on your date, critical when the calendar is fixed.
  7. 07

    Model State Law

    Uniform Residential Landlord & Tenant Act, URLTA

    Adopted in many states to standardize the rights and obligations of landlords and tenants, including required notice, security deposits, and habitability.

    Why it mattersWhen we buy a tenant occupied property, we honor existing lease terms and any state notice requirements, you never have to evict anyone to sell to us.
  8. 08

    State

    State Probate Codes

    Each state defines the process for transferring a deceased owner's real estate, some require formal court confirmation, others allow small estate or independent administration.

    Why it mattersWe regularly close on probate property. Our team coordinates with executors, personal representatives, and probate attorneys in the property's state.
  9. 09

    State

    State Foreclosure Laws (Judicial vs. Non Judicial)

    Roughly half of U.S. states require lenders to foreclose through the courts (judicial); others allow a trustee run auction (non judicial). Timelines and cure periods vary widely.

    Why it mattersIf a sale date is looming, we can often close before the auction and get the payoff wired to your lender in time to stop the foreclosure.
  10. 10

    State

    Seller Disclosure Statutes

    Most states require sellers to disclose known material defects, roof, foundation, water intrusion, prior claims, etc. Some states allow buyers to accept an explicit as is waiver.

    Why it mattersAs a direct buyer we conduct our own due diligence and typically waive traditional inspection contingencies. You disclose what you know; we accept the property as is.
  11. 11

    State

    Homestead Exemptions

    State laws that shield some equity in a primary residence from creditors and, in some states (notably Florida and Texas), require spousal signatures to convey title.

    Why it mattersWe verify homestead requirements at title and make sure both spouses execute where required, avoiding closing day surprises.
  12. 12

    Federal (Tax)

    IRS Form 1099 S Reporting

    Requires the closing agent to report gross proceeds from real estate sales to the IRS, with limited exceptions for primary residences under the exclusion thresholds.

    Why it mattersThe title company files your 1099 S automatically. Ask your accountant about the primary residence exclusion (Section 121) if it applies to you.

Complex Situation?

We've probably closed one like it.

Talk To Our Team