Cervone Deegan + Associates knows that if you are looking to make a real estate purchase soon then it is important to know what to pay attention to in your contracts. With a home purchase being among the largest investments that you may make in your life, it is important that these legal documents have you fully protected. Here is a closer look at those details.
The Contract Basics
All contracts should clearly state some basic information about all parties involved. The property address, contact information for both buyer and seller along with government-issued ID numbers for each. Additionally, the agreed-upon sale price, earnest monies paid, and all important dates should all be recorded.
Terms and Conditions
The core part of the contract should spell out all terms and conditions that are associated with the home purchase. This should include things like how disputes get resolved should they happen during or after closing along with addressing any contingencies for repairs or the like that should be completed prior to closing. Additionally, be sure the contract states who is responsible for closing costs. These can change from deal to deal as sometimes they get negotiated during the offer process.
Other than clarifying the standard contractual obligations, your contracts should have contingency clauses that protect your interests in case something unexpected occurs before closing day. For example, it is not uncommon for buyers to need their current home sold before they can buy another one. Should this be the case then you should make sure that includes a “Sale of Buyer’s Property Contingency” clause that states you won’t be held responsible for purchasing until your current home is sold at an agreed-upon price within a defined amount of time. Other standard contingencies include financing approval from banks or lenders, satisfactory home inspections, title insurance coverage being presented without issue, and the like. For any questions you may have about how to incorporate contingency clauses into your contract, work with a real estate attorney as they are the experts on using language that will safeguard your interests.