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When the time comes to purchase a home, many consumers are carried away on the wave of excitement. The future seems incredibly bright with promise; it’s not until later that reality begins to sink in. However, despite all this excitement, it is vital that you understand your home purchase contract, prior to taking ownership of the home. Your contract contains numerous important clauses and bits of information; failure to understand how those clauses apply to you will result in a less than enjoyable experience in many instances. What does your home purchase contract tell you? The contract can be a very confusing thing; here are a few of the top items that you should understand about it.
Are Warranties Included?
Is the seller of the home making any warranties concerning the structural integrity of the home? You must understand the difference between actual and implied warranties and those items that are not covered by such warranties. For instance, if the seller does not warrant that the roof is in good repair, you can find yourself paying to repair those leaks!
When Should Inspections Be Completed?
As a prospective homebuyer, you have the right to have the property inspected prior to taking ownership. However, there are cutoff dates for these inspections. If they have not been completed by the date specified, they you may be out of luck. A home purchase contract usually states that you will have to hire these inspectors and pay for the inspections; you should also ensure that as much time as possible is allotted for the completion of these inspections.
Who Pays for Repairs?
Your home purchase contract may also specify who is responsible for any repairs during a certain period after you take possession of the home. Use your inspection reports to negotiate in this area. In fact, may home purchase contracts do not stipulate that the seller is responsible for repairing damage found when you buy the home. Make sure that a clause is inserted stating who is responsible for repairing these damages, or you could spend a lot more money than you think.
The Close of Escrow
The date of closing for escrow is an important thing in any home purchase contract; you must be out of your home (and the previous owner must be out of theirs) before this date comes around. The day that escrow closes is also the day that you can pick up the key to your new home and begin moving in.