This article is a continuation of the previous article which addressed what to do prior to looking for a property to purchase. Here, we discuss what to consider when making an offer to buy real property.
Any offer to purchase real estate must be in writing. It must contain all the terms and conditions upon which the buyer is offering to purchase the property. When a seller accepts this offer, an enforceable contract is created and the parties are legally obligated to abide by the terms set forth therein. As a result, it is imperative that a buyer first understand the contents of his or her offer.
All offers should include provisions related to the following: 1) a description of the property; 2) sale price; 3) financing terms; 4) seller’s promise to provide clear title; 5) closing date; 6) earnest money deposit; 7) proration of real estate taxes, utilities and other applicable bills; 8) title insurance, survey, termite and moisture inspection; 9) type of deed; 10) state specific requirements; 11) provision for walk-through inspection; 12) expiration of offer; and 13) contingencies.
Contingencies are very important provisions in any real estate offer. These clauses state that a buyer will go through with the purchase only if a certain event occurs. The following are two important contingencies:
1) Home Inspection. This type of contingency states that the buyer has the right have an inspector look at the home. If the inspector’s report is not satisfactory to the buyer, he or she may void the agreement.
2) Financing. This type of contingency states that if a buyer does not acquire specific financing for the property, he or she will not be obligated to perform in accordance with the terms of the contract.
An experienced attorney at Paulson & Paulson, PLC should be consulted prior to the submission of any offer for purchase of real estate to a seller and can advise you with regard to the provisions that should be contained within a proposed offer. With this knowledge and counsel, a buyer can be confident that he or she is making a well-informed decision with regard to submitting an offer to purchase a home.