Our homes are a special place for us; it’s where we raise our children, invite our friends over for dinner, and where we relax after a long day of work. Although you may love the home that you’ve created, at one point or another you may want to look for a new house, whether it’s because you had another kid, moved cities, or just want something new. When we look for a new home, we don’t just need to fall in love with the property, but we have to find a real estate contract that meets our expectations. If you’re unsure what to look for in your contract, here are 3 important sections to review.
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One of the important areas to check is the financing contingency clause, which will protect you in the case that your loan falls through. If this happens, the clause states that you’ll get a refund of your money, and you’ll also be relieved of your contractual obligation. Although we all hope that our financing will be successful, you should be protected just in case.
Inspection contingencies vary depending on the contract, but it’s another way to protect yourself during a purchase. This part of the agreement allows the purchaser to hire a home inspector to check for any defects. If there are structural issues, the seller is usually responsible for the repairs.
Closing costs are usually about 3-5% of the purchase price, making it a big payment that you should consider before you close the deal. Although the closing costs are the buyer’s responsibility, buyers can request that the seller helps them with some of the costs, such as the loan fees, appraisal, and escrow fees. If the seller agrees, this can be a huge help for the buyer.
Before signing a real estate contract, have an experienced real estate lawyer in NYC review it. Since these lawyers are experts in residential and commercial real estate contracts, they’ll be able to identify areas that are beneficial to you, as well as what areas of the contract that you should watch out for.