Buying or selling a piece of property can be a complex, emotional process. To protect your emotional and financial well being, there are certain components that you should contemplate when making or accepting an offer on a home.
Changes in the Closing Date
Buyers and sellers alike look forward to the closing date, the day when ownership of the home legally transfers from the seller to the buyer. Unfortunately, things do not always go as planned in the world of real estate. Multiple items can delay a property closing, such as documentation errors, the discovery of property liens, and delays in financing or the transfer of assets. When things go awry, it is vital consider how you want this to be handled.
For example, if closing is delayed due to a simple problem that can be quickly remedied, a penalty-free extension of a few days is an appropriate solution. Closings that are delayed for a significant amount of time may result in the return of the buyer's deposit or the delaying party paying a fee each day the closing is delayed. Spelling out how these unforeseen situations will be handled makes the home buying process as seamless as possible for buyer and seller alike.
Interior and Exterior Items
When making an offer on a home, everything is negotiable, including what items stay with the home. In fact, clarification is vital to prevent disagreements at closing or the final walk through. If you love the home's pathway markers, don't assume that the seller will automatically include them. Make sure to specifically request that this item be included.
Appliances are a widespread area of contention; it may be common in certain markets for homes to include the appliances. If you want (or don't want) the appliances, specify in your offer whether you want them to stay or be removed.
Financing or Selling Contingency
If you need to secure financing for the home, make sure to incorporate a financing contingency into your offer. This protects you if you are unable to obtain a mortgage for the home. It is important to include an appropriate time frame to obtain financing so that you have a chance to apply with multiple lenders.
Conversely, you may have to sell your current home before you take ownership of the new home. A selling contingency lets you back out of the deal if you cannot sell your home in the specified time frame.
Both financing and selling contingencies help ensure that your earnest money is protected if the deal goes south.
When it comes to buying or selling a home, it is always best to contemplate the worst case scenario. Clear terms keep you protected, even when things do not go as planned. If you find you are having problems closing on a home, contact a professional real estate lawyer, like Iannello Anderson, for more information and assistance.Share