Knowledge is power! If you're not fully acquainted with the intricacies of a purchase agreement, you can read up on these five easy considerations.
. Seeking clarification and information from your realtor (not the selling agent) will bolster your confidence in the agreement's ability to safeguard your interests.
Ensure a Solid Closing Date: Define a definitive closing date that aligns with your personal schedule and financial situation. Familiarize yourself with mortgage payment details. If selling a property first, understand the potential penalties associated with closing your initial mortgage. Plan for notifying landlords and having funds ready for the initial deposit and down payment.
Detail Inspections: Clearly outline the inspection process and timing. Factor in specialized inspections for secondary structures or features like pools, which may require specific inspectors with expertise in these areas.
Ask for proof of Warranties: Don't be shy to request warranties or extended coverage for significant purchases such as furnaces, windows, roofing, and appliances. Consider asking for documentation regarding the history of maintenance and upgrades in written or visual form, saved on a USB drive, which can be transferred to you, the new owner.
Include Protective Clauses: Integrate clauses such as "subject to lawyer's approval" to account for potentially hidden factors in the property's title like condo assessments, right of way, encroachments, water access, new additions or renovating permits, and more. This allows a legal expert to examine the title's finer details that might not be apparent to you or your realtor, ensuring informed decisions.
Negotiate Repairs and Inclusions: Don't hesitate to propose repair requests, necessary fixes, or the inclusion of specific items. Specify details such as a detached bathroom mirror or an unattached kitchen island. These written specifics can help avoid misunderstandings and ensure a smooth transition.
By incorporating these five considerations into your purchase agreement, you'll be better equipped to navigate the complexities of the real estate transaction.