Things Clients Should Know - No. 2
This week's topic deals with signing a real estate contract. Generally, real estate agents do a respectable job of filling out pre-printed MLS forms but whether you are buying or selling real estate, we recommend that you have us review the contract before it is signed. Don't rush into signing a contract when you do not fully understand its contents or aren't sure you have all of the legal protections you need. The contract of sale is a legally binding agreement that sets the rules for your closing. The better-drafted the contract is, the smoother the closing should be.
Do you want a "time is of the essence" clause in your contract?
Do you want an inspection contingency?
Should you obtain a current survey of the property? Are you or the other party effecting a I.R.S. Section 1031 exchange? What if the lender can't be ready by the scheduled closing date? If you default, do you just lose your earnest money deposit or can you be sued for damages? Does non-resident withholding apply to the seller? Do you have to close on the sale of your current property in order to buy the new property? Are you buying from an estate, or from a seller who must obtain lender approval for a short sale? We are happy to review the contract with you to address all of the issues as part of our closing fee. As Ben Franklin put it, "an ounce of prevention is worth a pound of cure."
- 2 years ago
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