Terms and Conditions

Real estate is among the tough industries you might encounter due to its obligations before acquiring a home. In most cases, finding an agent and your dream house, not to mention the financing process, is always tedious for many. Having this said, making a formal offer on your dream home gets one file a lot of paperwork. Here, one specifies the terms of their offer, including your real estate purchase contract. In some cases, these terms are seen as the contingencies are written in your contract where, if not met, you can walk out of the deal. The following are the seven crucial real estate terms and conditions to possess.

Financial security is quite out of reach for most of us; hence only a few can make an all-cash offer on their dream home. Following this, most of us settle for a mortgage plan. However, researching on the interest rates is essential to examine where you fit in the given scenario. Notably, your purchase offer must only be contingent upon financial acquisition at the specified rate of interest, and here’s why.
If you can’t afford a monthly house payment higher than 5%, then place not more than 5% in your offer. Failure to live up the higher offer, the seller keeps your deposit if you back out of the offer.
If a VA or FHA loan is essential to closing the deal, you should specify this in the contract. Also, the ability to make an all-cash offer should be stated since sellers would be more attracted to such a deal. An all-cash offer raises the chances of the deal going through and ensures the deal is closed on time.The real estate industry has additional expenses above the property price that sellers and buyers cover for the deal execution-closing cost. If you need the closing costs paid by the seller, you have to ask for it in the offer you make. The seller assist is like credit having the seller agree to shoulder the additional burden normally carried by the buyer.

While it sounds strange, it is common in the real estate industry, relying on how well the two parties negotiate. Here, the buyer pays a little extra for the home if the seller is to cover the closing cost. The offer should state the closing cost requested in cash amount or a percentage of the home’s price.One of the common mistakes buyers make is believing in the verbal agreement from sellers. If you need any fixtures or/and appliances, rely not on your realtor’s verbal agreement. The agreement with your realtor should specify any additional negotiations, including fixtures and appliances in the home purchase.We all choose different time frames for the completion of a transaction for our new homes. Some of the common time frames include thirty, forty-five, and sixty days. Some issues that affect this time frame include seller’s need to find a new home, the time required for relocation, and the remaining term of your lease if rented. Buyers or sellers wish for closing as short as fourteen days. However, removing all contingencies and obtaining the necessary paperwork and funding within such a time frame is quite a tall order.The title search fee, escrow fee, recording fee, title insurance, notary fee, and transfer fee make part of the closing cost. Notably, the contract should specify who covers what fee in the closing cost. Your real estate agent can offer advice on who pays what fee of the closing cost in your subject location.

In some cases, homes sold by the real estate agencies might come with some flaws. Home inspections are, therefore, a crucial part of the real estate deal to assess for any significant or expensive-to-repair flaws. Including a home inspection contingency will allow you to walk out of the deal if you notice the aforementioned flaws. However, note that different places have different laws concerning home inspections.
The common drill involves a home inspector walking through the property, examining any structural damages. A specialized inspector may be involved to access damage in some fields, including pest control, painting, and electricity. Time to time, inspectors notice flaws that might be expensive to repair, such as a new floor, a new roof, or a new paint job for the house. Here, sellers may incur the repair cost or credit it from the total home cost. Check with your realtor if the home inspection clause in your contingency clause lacks.

Existing homeowners may require funds from the sale of that home for the acquisition of a new property. Here, homeowners should make their purchase offer contingent upon the sale of their current home. A reasonable time frame, about 30 to 60 days, should be provided for the sale of the home. The realtor will not take the property off the market indefinitely while the homeowner searches for a buyer.

A thorough real estate contract has tons of things to go through. However, worry not since many agents use standardized fill-in-the-blank forms that cover all bases. That said, it is still essential to educate oneself on the key terms and conditions of the real estate purchase contract. If any of the contingencies in your agreement aren’t met, one should cancel the deal. A conditional contract is by far the greatest asset in any real estate deal.