Selling - The Legal Issues
The Offer
Once you have had a buyer make an offer and you have accepted it, you both
have certain responsibilities you must live up to. There are two standard
contingencies that ensure both parties are covered. There is a financing
contingency - this makes the sale dependent upon the buyer's ability
to obtain a loan. If they cannot, the seller is free to open the house back
up to the market. Then there is an Inspection contingency -
this ensures the buyer a professional inspection of the property to their
satisfaction. Once a buyer has put down a deposit, they forfeit it if they
back out of the deal for any reason not stipulated in the contract.
The Purchase Agreement
The purchase agreement must include the seller's
responsibilities, such as passing a clear title, maintaining the
property in its present condition until closing, and making the
agreed upon repairs to the property prior to the buyer's moving
in.
Most sellers prefer to make all the minor repairs prior to putting their
house on the market; this can help them endure their asking price. And nearly
all purchase agreements include a buyer contingency called an Inspection
Clause , whereby a buyer can back out if there are numerous defects
found. It can behoove a seller to make the repairs before listing the house
because a buyer can use the "needed repairs" angle to negotiate a lower price.
Plus remember that once you sell, you are looking for your next house, and
you do not want to have to spend all of your time fixing the house that you
are moving out of. |
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