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Purchase agreement in a real estate transaction
January 16, 2012 by admin · Leave a Comment
When it comes to protecting your position as buyer in a real estate transaction,
you must make certain to cover yourself in case unexpected problems arise when it is time to close the deal. And this is especially true when buying a property that has been under option for six months to a year. This is why I highly recommend that you include the following three contingency clauses in your purchase agreement:
1. Buyer must approve of the property’s title status and marketability before this transaction can be closed. Include this clause in the event there have been
liens or lawsuits filed against the property ‘s title or owner since the option was purchased that adversely affect the property ‘s marketability.
2. Buyer must approve of the status of the property’s existing loans before this transaction can be closed. This clause must be included in case any of the property ‘s loans are in foreclosure.
3. Seller must completely vacate the property and grounds before this transaction can be closed. This clause protects the buyer from getting stuck with an obstinate property owner or a hostile tenant who refuses to peaceably leave the property after the sale has closed and the property ‘s title has been transferred to the new owner.You can read carefully the sample real estate purchase agreement for instructional and informational purposes only. Please do not use this agreement to purchase property in your state without first consulting with a board-certified real estate attorney to make certain that it meets all of your state’s real estate contract standards.
you must make certain to cover yourself in case unexpected problems arise when it is time to close the deal. And this is especially true when buying a property that has been under option for six months to a year. This is why I highly recommend that you include the following three contingency clauses in your purchase agreement:
1. Buyer must approve of the property’s title status and marketability before this transaction can be closed. Include this clause in the event there have been
liens or lawsuits filed against the property ‘s title or owner since the option was purchased that adversely affect the property ‘s marketability.
2. Buyer must approve of the status of the property’s existing loans before this transaction can be closed. This clause must be included in case any of the property ‘s loans are in foreclosure.
3. Seller must completely vacate the property and grounds before this transaction can be closed. This clause protects the buyer from getting stuck with an obstinate property owner or a hostile tenant who refuses to peaceably leave the property after the sale has closed and the property ‘s title has been transferred to the new owner.You can read carefully the sample real estate purchase agreement for instructional and informational purposes only. Please do not use this agreement to purchase property in your state without first consulting with a board-certified real estate attorney to make certain that it meets all of your state’s real estate contract standards.
Whatever you do, do not, I remind you that, do not use the same real estate purchase agreements that are used by real estate licensees in your state to document the purchase of a property under option. I say this because virtually all of the real estate agreements used by real estate licensees are written to protect the licensees’sales commissions and the legal rights and interests of the sellers who have listed their property through real estate brokers.
Finally,I recommend that you hire a board-certified real estate attorney to prepare a purchase agreement that protects your rights and interests as a buyer.
