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When the time comes to purchase a home, the excitement can be almost overwhelming. It can also be a confusing time. The legal structure of your home purchase contract can be a bit bewildering. The best option is to retain the services of a real estate lawyer, who can explain all the legal terms, ensure that the contract offers protection for both you and the seller and much more. What should you look for in your home purchase contract that will indicate that the document is viable? Here are a few tips to help you review your home purchase contract.
The contract must include the purchase price that you have offered to the seller. While this may not be the actual price that you purchase the home for, your initial offer should be included in the contract. Any changes can be made through revisions or redrafting the purchase contract.
Another area of question in a home purchase contract is that of earnest money. Think of this as your down payment on the home. Earnest money is provided to show that you are serious about buying the home. Care should be exercised here; if you choose not to purchase the home, the earnest money may stay with the seller! A qualified attorney can help you ensure the best situation
The next area of consideration should be the length of time the contract will be open. Be careful here; if you allow the seller too much time to consider your offer, you may find yourself bidding against other buyers. Limit the seller to 48 hours to accept or reject your offer to keep things moving smoothly.
A legal description of the property should be included in the contract. This includes a description of the home (if there is one), of any outbuildings, of the property type and condition, as well as other areas. This helps you and the seller ensure that there are no hidden aspects to the sale.
A final consideration with any home purchase contract should be the inspection clause. This is the clause that states who pays for inspectors, how long you have to get the inspections completed and other related information. In addition, this clause should state that your decision to purchase the home or property hinges on the outcome of the inspection.
A home purchase contract can be quite confusing, but all areas of the contract should be filled out appropriately, or you may find that your purchase experience is somewhat less than enjoyable.