Contract Negotiation: Terms and Conditions
No-one should ever simply sign a real estate purchase contract without thinking about it, looking through it and analyzing the consequences that will occur after it is signed. As with any type of contract there is defiantly a lot to consider, and if the terms and conditions don not suit you, then you shouldn't sign the agreement. If you have any problems with the wording or terms of the contract you should always seek the advice of your realtor, who will be glad to help you out, or, if you have one, your attorney.
Read Everything
If you are pretty comfortable with the contract you should still read it all. Most real estate purchase contracts are packed with legal jargon and other such things. If there is anything that you don not like or understand do not hesitate to ask questions to your realtor or attorney. Better to ask questions now than after you've signed it and are liable. Some of the more important questions to ask include those below.
Finding out the cutoff dates for the inspection and approvals reports should be something that you need to think about. A normal real estate contract gives the buyer the right to hire all kinds of people to check out your homes condition. The more time that is allowed benefits the buyer, so if you are selling your home then you may want to look at setting the dates out.
As a good precaution you may want to ask who is liable for any repairs that maybe needed after an inspection. Even if a buyer has someone perform a check on your house, you are not obliged to make the repairs or modifications that may result from the inspectors report. Most reports however are used to negotiate repairs for major problems and safety issues, so you should be prepared to possible accept some of the fees. Check your contract first though.
Communicating With The Buyer
You should always make aware to the buyer; usually through your contract, what parts of the house are in good order. This gives the buyer the information as to what is being sold as is and in good working order, so as no confusion can arise.
Home warranty plans are becoming very popular in real estate dealings. A home warranty plan is a limited insurance policy covering the basic major systems and appliances in the property. It is equally important for both the sellers and buyers and should be considered.
Throughout your real estate dealings you should always be aware when the escrow is scheduled to close. If you are the seller you must move out by this date, so you will have to make sure that the closing date doesn't fall before you move into your new home. Don't cut the dates too close.
