Let me start by saying that you should have your purchase and sales agreement reviewed by and attorney before you sign it. I am going to give you some of the things that you should make sure are in the purchase and sale from a buyers perspective. However, the list is not exhaustive, but merely a list of some of the things you should look for.
First of all, you need to make sure, if you are going to finance the purchase that there is a mortgage contingancy in the purchase and sales agreement. This will say that if you can not get a mortgage under the terms listed, that you will be released from the purchase and sales agreement and get you deposit back.
Second, the should be provisions that allow you or your agents to conduct inspections on the property. THis will allow you to have a property inspector to enter the property and inspect the property. In the typical p & s, it is not really clear what deficiency the inspection needs to find in order to back out of the deal. This seaction of the p & s should be explained in detail.
Insurance. In general, the p & s should require that the seller maintain insurance on the property until the closing.
Seller default. In general, in the typical purchase and sales agreement if a seller defaults and will not go forward with the sale the only remedy is that the buyer gets their deposit back. This section of the p & S can be enhances up to the point of specific performance under which the seller could be forced to sell the property.
Buyer Default. In general, the standard p & s would require that the buyer who backs away without a reason would forfeit the deposit.
If you are purchasing a property and would like to have the purchase and sales agreement drafted for you, Real Estate Attorneys often will draft the P & s as part of the closing process. You should inquire if that is the case with the attorney you contact.
In general, I will draft a P & S as part of the closing. If you have any questions or comments, or would like to discuss your potential purchase of a property, call me, Tim McDonald, today at (401) 739-2020.
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