Contracts are probably involved in every major purchase, investment opportunity and legal action you take. When it comes to real estate contracts, they are sometimes referred to as a purchase and sale agreement, contract for sale, purchase contract, agreement to purchase or agreement for sale. Always read contracts thoroughly and make sure you understand everything. You might want to have a lawyer look over any contracts before you sign them. Learn more here about contracts and how to protect yourself.
Variations May Be Necessary In New Construction
Typically, new construction contracts are written by the developer and for the developer. That means the contracts are heavily slanted to favor the developer in all situations, including the product specifications, delivery date, and variations in the lot and house configurations. This home buyer might not have a case against her builder for changing the specifications of her contract.
Consider Real Estate Market When Making Investment
When you're considering buying an investment property that is pre-construction you need to look at the deal carefully. Certain areas of the country are awash in real estate investment properties such as condominiums. What do you need to consider if you're buying investment property with hopes of flipping it?
Limited Common Element In Condominium
This condominium buyer wants to convert the basement to make it into a duplex. The basement will be considered a "limited common element" and the home owners will need to apply for permits. There are differences in the way you own a fee interest in a condominium and the way you own a limited common element of a condominium.
Buying Home With Septic Problem
A home buyer is in the process of purchasing a property that has a potential septic problem. A septic specialist will help determine how much repairs will cost so the buyer can include the repair in their real estate contract. With so many homes on the market, a buyer should not feel like he needs to negotiate with the seller on the cost of repairs.
New AC Does Not Meet Manufacturer’s Recommendations
After the inspection of a newly constructed home the buyer has found that the air conditioning does not meet the manufacturer's requirements. Now she is negotiating with the developer and sub-contractor to get some assurances that the unit will work. A real estate lawyer can help determine what was included in the contract and how she can get out of the purchase if the developer doesn't fix the AC or provide a warranty.
Seller Fails To Provide Disclosure
A home buyer realizes they didn't receive all of the disclosures when they purchased their home. The lender or escrow company should be able to give them a copy of the missing disclosure. If there is a problem with the home related to the missing disclosure, the buyer should contact an attorney.
Understanding Due On Sale Clause
Mortgage lenders often include a due on sale clause in the mortgage agreement. This homeowner would like to transfer his home to an LLC but is concerned the due on sale clause will be invoked. The idea behind the due on sale clause is that the lender was willing to give the loan to a specific owner of specific piece of property and if that owner sells the property, the lender is entitled to decide whether it wants to continue with the loan arrangement.