Common property contract pitfalls to avoid
Updated: Jan 30, 2021
Purchasing a home is nerve-wracking to say the least- Every contract is different, aside from State boiler plate items. In general here are some areas to make sure your Realtor addresses in YOUR contract for the purchase of, or accepted offer for, a home:
Timelines- what are the deadlines for certain tasks. Important- when does the clock start if timeline is noted as a number of days...are those calendar or business days? Earnest money deposits- the greater the amount the more open to finding solutions during the process the parties should be; however as a Buyer know that with the exception of noted reasons in the contract it is difficult to get the deposit back.
What is the Buyer offer subject to: suggested contingencies (will vary according to particulars of the property) are: both home and buyer to qualify, review of the preliminary title report items, review of the seller property disclosures, agreed upon repairs to be completed prior to close, review of any inspections, and subject to appraisal call outs for the loan.
BE SURE your Realtor watches the close date and provides an extension in writing, if needed, to meet conditions that arise in the purchase/sale process.
BE SURE all changes and conditions that arise are negotiated and approved by all parties in writing in the event of a dispute.
Contracts are designed to protect all parties involved. Ultimately, the goal is to provide and receive clear, concise communication that clearly shows intent, expectations, and agreement amongst the parties.
It will all be worth it in the end with strong Realtor representation, clear communication, quality inspectors, and assertive lenders. Pull your team together wisely, they will be your ship through potentially choppy seas. Ask for referrals and stay informed- it will all be worth it in the end when you are handed the keys to your new place!