Contracts are at the heart of real estate transactions. Besides the contract between the buyer and seller, there are many other contracts involved during the various stages of the process, like contracts related to financing, loans, taxes, and much more.
Purchasing real estate not only involves big money but is much different from other purchases in the complexity of the purchasing process that involves many legal aspects. Contracts are at the heart of real estate transactions. Besides the contract between the buyer and seller, there are many other contracts involved during the various stages of the process, like contracts related to financing, loans, taxes, and much more. Besides a real estate agent who serves both buyers and sellers, you need legal guidance from Reich Law – Calgary Real Estate Lawyers when purchasing real estate.
Only a lawyer can ensure that you include all essential terms and conditions in the contract that smoothens out all wrinkles and paves the way for the smooth transaction of the property.
Finance terms
Taking out a mortgage is the most preferred way of buying a property because only a few can go for all-cash purchases. The purchase offer must mention the specified interest rate of mortgage that you are comfortable in paying every month. The type of loan that you take should also find mention in the offer, and in case you are paying all cash, mention that in the offer too because it attracts more sellers.
Seller assist
If you want the seller to pay a part of the closing costs, mention it clearly in the offer. It will make clear about the financial liability that the seller should bear. Although the buyer bears the total closing costs, it depends on your negotiation skills to make the seller agree to absorb some of the expenses, which is not very uncommon. But you must specify the amount in the offer.
Who pays the common fees?
The closing costs of home purchase include many common fees like title search fees, escrow fees, recording fees, notary fees, transfer tax, and many more. There is no fixed norm about who pays for such costs – the buyer or seller, but the real estate agent is aware of the prevailing trend in the area, and you must follow it unless agreeing to something different.
Home inspection
Including a home inspection clause in the offer is a wise decision because it allows you to walk out of the deal in case of a failed home inspection that exposes too many flaws of the property that could involve expensive repairs. As home inspection laws depend on the state laws, your lawyer can guide you about the proper way of incorporating the clause in the offer.
Fixtures and appliances
In case you intend to get some of the fixtures and appliances like refrigerator, washing machine, stove, oven, dishwasher, etc. specify it clearly in the purchase offer instead of assuming the seller would agree to it based on any verbal agreement.
Closing date
30 days, 45 days or 60 days are the standard timelines for closing the deal, but consider the circumstances for both you and the seller so that you can put a realistic date in the offer. The date should not become a hurdle later.
If you are selling your house and want to use the funds for buying a new home, it should have a clear mention of the offer.
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