Why You Need an Attorney to Review Your Real Estate Purchase Agreement
Whether you are buying or selling a property, the purchase and sale agreement is the single most important document of the transaction and should never be overlooked in its importance. It describes all of the details and terms of the transaction and secures the rights of the buyer and seller.
This contract should include every essential term and cover several potential scenarios that could occur in order to avoid costly disputes. Both the buyer and seller should have their interests represented in the agreement, not just one party. Because of its importance, it is highly recommended for both parties to hire an experienced Broward County real estate attorney to draft or review their purchase or sale agreement.
A poorly drafted real estate purchase agreement is a major liability
Make no mistake about it; a poorly drafted or one-sided purchase agreement is a major liability. Although many real estate agents will draft their own agreement or use a template, there is no guarantee that their agreement will protect your interests if something unexpected occurs.
Real estate agents are not experts in the legal side of real estate and are prohibited from giving you legal advice relating to your real estate transaction. Agreements drafted from templates will almost always leave out very important terms that are relevant to your specific deal.
Some of the common terms that are covered in your purchase agreement include:
- The final sales price, which may be subject to change upon inspection
- Remedies if serious environmental problems like termites, asbestos, or lead paint are found
- How future changes to the property should be managed
- The consequences if the closing does not take place for any reason
- How the down payment is transferred (through escrow or another method)
- Contingencies that must be met for the home purchase to be completed such as:
- Title contingency – this allows the buyer to back out of the deal if a title defect is found
- Appraisal contingency – this would allow the buyer to back out if the home is not worth as much as the buyer intended to pay for it after an appraisal
- Financing contingency – this allows the buyer to back out of the deal if he or she is unable to secure a mortgage after a good faith effort
- And several other potential contingencies
This is just a short example of what is typically included in even the most basic of residential real estate purchase agreements. If you are in the process of negotiating a real estate purchase agreement you need an experienced real estate lawyer in Broward County to represent you. Contact Mark Schecter at Schecter Law for a consultation by calling (954)-779-7009 today.