Buying real estate can be extremely demanding. It requires a whole lot of diligence on part of the buyer, more so, when drafting the terms and conditions of the purchase offer. You may hire an attorney or another real estate agent to create a contract. Nevertheless, you should always ensure that you completely understand every term of the contract. Here are a few blunders that you are better off avoiding.
1. I overlooked the fine print!
This is probably the most common mistake buyers make. Many residential purchase contracts include standard real estate boilerplate text. Many firms, in fact, use preprinted forms. While preprinted or computerized forms have improved efficiency, they sometimes do so at the expense of the buyer.
It is recommended that you get a copy of the form well in advance and carefully study it. Highlight every term you are not comfortable with and would like to modify. This is a neat tactic to clearly mark buyer unfriendly fine print.
2. Were basic elements included?
Buyers often ignore cross-checking the contract for basic elements. These are certain terms that should be included in every real estate contract. Some of the absolute necessary points to be included are the address of the property, valuation and condition of the property, amenities provided, contingencies, finance terms, purchase price, and closing date.
The contract should also include the time you offer the seller to decide on your offer. Include passing clear title to the property, maintaining the property in its present condition until closing, making any agreed-upon repairs and delivering the property clean and free of personal possessions and debris.
3. My contract has improper withdrawal and problem solving terms
Clearly delineate the conditions that would allow you from withdrawing the agreement. Also list all responsibilities of the seller before you take possession of the house. The contract should also include terms that allow for smooth resolution of problems. This will help you deal better with any inconsistencies in the house.
4. The contract doesn't deal with sellers' contingencies
Many contracts rely heavily on seller conditions. For instance, some sellers may include a clause that allows them to only sell a house provided they purchase another house. You should always look to minimize such contingencies by either excluding these conditions or looking for sellers who are already obligated to buy another house.
5. But I already have a verbal contract!
This is the gravest of mistakes you could possibly make. No matter how unimportant a condition is, always make sure that you have it in writing. Verbal agreements are not binding. The seller may be your best buddy, but hey in that case he shouldn't have a problem with written agreements.
Comments(0)