Buying real estate can be stressful. And with all of the bad news we're seeing in the media, it can be downright scary! There are conflicting opinions everywhere, on what people believe the real estate market is going to do next.
One important factor in a contractual agreement to
buy or sell real estate is the contingency. You need to make sure you have a REALTOR® who can effectively communicated with you, the other agent if one is involved, and all other parties to the real estate contract; IE the lender, mortgage broker, attorney, title company, appraiser, home inspector, pest inspector, surveyor, etc.
In real estate contracts the contingency is a common element. Contingencies are clauses in a contract that hold both the buyer and the seller to the legal verbiage contained within that contract. Contingencies can give either the buyer or seller a way to get out of the contract if certain conditions aren’t met, such as, if the home does not appraise for the contract price, or if the cost for repairs exceeds what the buyer or seller is willing to pay.
Almost all contingencies contain a specific time frame. These time frames dictate how long a buyer has to apply for a mortgage; how long the buyer has to obtain final loan approval, how long the buyer has to obtain all inspections; how long either the buyer or the seller has to respond to the home inspection stipulations, etc. Every contract is unique. The possibilities for contingencies are virtually endless. Always pay close attention to the time frames in each contingency. These time frames can make or break your transaction!
And one more very important consideration is how you're being represented. I posted a comprehensive blog about the real estate laws in the state of Florida. I suggest you print this so you can take your time reading it, to gain a thorough understanding of the legalities in Florida.
For more information on this subject, read Changes in real estate contracts and laws-what every buyer and seller should know and The Long and Winding road to a real estate closing.
Also, view my web site Buy Real Estate in Daytona Beach FL
