No matter how intricate the need, Eileen and Bridget share their combined 40 years of wisdom for your property and estate planning needs.
In this three-part series, the Property Sisters help you better understand real estate contracts.
Part I of III: Attorney Review, Inspection and Contingency Clauses
We’re in a red hot market now. When a Buyer and Seller reach agreement on the big considerations (price, closing date, etc.), contracts are often signed quickly, to seal the deal. The initial ‘love fest’ however, can give way to hard feelings, as potential issues arise. It is therefore imperative both parties have an understanding of their commitment when they sign a contract.
A typical Real Estate Contract includes:
- Attorney Review – Most contracts allow each party to have their attorney review and modify after the contract is signed. This allows parties to sign with confidence they can correct later, if the contract is unfair or one-sided. Present your signed contract to your attorney as soon as possible. Attorney review windows close quickly. It is important for Buyer to realize that Seller can refuse modifications, and it’s equally important Seller remember Buyer can walk, if a proper and timely request is denied. Compromise is key. Keep the big picture in mind and keep moving forward.
- Inspections – Property Inspections are permitted to assure Buyers there are no structural defects, or safety issues with the home. Experience has taught that inspections can upset everyone. Sellers feel their beautiful home is being insulted and Buyers fear their huge investment will crumble beneath their feet! Contracts will not fall apart over inspections, if everyone keeps perspective. Communication between all parties is paramount. Home Warranties can offer further peace of mind. Methodical and fair resolution of the issues will get everyone past the property inspection and on the road to closing.
- Contingency – Contracts are often “contingent’ on certain occurrences, such as Buyer getting a mortgage loan, getting a contract on current home, etc. If these occurrences fail, contract can be nullified. Contingencies exist to protect all parties but should never be viewed as an easy way out. As we shall see in Part III of this series, penalty for breach of contract can be steep. Only enter a real estate contract if you fully intend to buy or sell.
Join us next month for Part II, as we review closing costs, surveys, insurance and tax credits.
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For tips and advice, look for The Property Sisters segment each month, or contact us at:
Bridget Gricus (708) 814-6253, bridgetgricus@gmail.com
Eileen Kerlin Walsh (708) 448-5169, Eileen@KerlinWalshLaw.com
