Sunwest Escrow, the real estate contract Albuquerque resource, has identified five facts that we believe all potential home buyers and home sellers should know before entering into a real estate transaction.
Fact #1: All contracts are negotiable by the buyer and seller.
Although a real estate contract is drawn up, that does not mean it cannot be modified. The buyer and the seller have the right to request changes to these documents as they move forward with the real estate transaction.
Fact #2: The buyer can ask for a home sale contingency to be added to the contract.
A home sale contingency clause is a modification to a contract that states that the finalization of the contract is contingent upon the sale of the buyer’s initial home. This protects buyers who were planning to use their home’s sale to finance their next home purchase.
Fact #3: The buyer can also ask for a right of first refusal clause to be added to the contract.
Drawn up before the house is put on the market, the right of first refusal allows the seller to market the house however they want but the original interested buyer gets the first option to purchase the property should other potential buyers want to make offers.
Fact #4: Inspection, appraised and financing contingencies can also be added.
An appraisal contingency ensures that the home is valued at a minimum amount, if it isn’t, the buyer can pull out. The inspection contingency allows the buyer to request repairs or pull out of the sale should an inspection report come back unfavorably. A financing contingency lets the buyer back out of the sale if they are unable to secure adequate financing.
Fact #5: Kick-out clauses can be added to protect sellers.
A kick-out clause protects sellers against home sale contingencies, allowing them to continue marketing the home to find other qualified buyers. If one is found, the seller can request that the original interested buyer remove the home sale contingency or forfeit the offer.
It’s important that buyers and sellers remember these five facts prior to entering into a real estate transaction. For more real estate contract Albuquerque information, call Sunwest Escrow today!
Original Source: https://sunwestescrow.blogspot.com/2019/02/5-facts-about-real-estate-contracts.html
Sunwest Escrow, Inc. is a customer-oriented servicer of private mortgages, real estate contracts, and other installment type notes. Sunwest Escrow, Inc. was formed by the owners of Sunwest Escrow, LC in order to provide a wider range of financial products.