< How to Avoid Common Homebuyer Contract Mistakes
© Home Buyer’s Legal Info 2012
LEGAL INFORMATION FOR NEW HOME BUYERS
HOME BUYER’S LEGAL INFO

THE LATEST...

Contract signings to buy homes

in U.S. fall for second time in

2015

Home sales are down. Could this mean we’re headed for a recession … The number of contractual agreements to purchase previously owned homes in the United States abruptly fell during the month of August for the second time this year, realty officials said Monday. The National Association of Realtors said Monday that an index of pending home sales decreased nearly 1.5 percent after a half-percent boost in July. The association noted a modest increase in the West, but said contract signings declined in all other regions. The association uses the Pending Home Sales Index -- an indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co- ops. Despite the August decline, the NAR noted a "healthy" increase of pending home sales over the last 12 months. Last month's contracts rose 6 percent over those in August 2014, officials said. Looks like in the overall scheme of things, home sales are doing just fine. You can read more at: upi.com

How to Avoid Common Purchase Agreement

Mistakes

When you are out purchasing a house, be sure to make your every word and action count. Especially, when filing out your purchase contract. Otherwise, things may go wrong pretty fast. A Florida couple was out to purchase a home for $620,000, but they never ended up doing so. That is because although the contract of purchase read that the property was to go for “no less than $620,000”, two appraisals made things difficult. The sellers ended up arranging an appraisal of $635,000, while the buyers got one of $560,000. The end result was termination of the contract as a result of disagreement between the sellers and the buyers. The sellers sued the buyers for breaching the contract. Their argument was that the buyers were obligated to purchase the house, owing to any appraisal having a valuation of $620,000 or higher. The buyers, on the other hand, maintained a position that they were allowed to terminate their contract, owing to any appraisal putting the valuation at something lower than $620,000. In the month of April, 2010, the Second District Court of Appeal in Florida ruled in favor of the buyers. The reason given by the court was that as the appraisal mentioned “no less than $620,000” it meant that the would-be buyers could terminate their contract in case any appraisal put the valuation of the house at a price lower than $620,000. Very often, property buyers and sellers misinterpret a contract. When the contract says one thing, they interpret it as saying something else. This is the reason why it is extremely important to address any contingency with the help of full sentence. Leaving no room for confusion in a contract is crucial. The following tips will help you remain on top of your contract:

Give yourself and others enough time

The validity of certain contracts depends upon the buyer securing finance by a specific date. You must allow yourself, and any other involved party, adequate amount of time before closing your deal. If you try to close too quickly, you may end up not securing a loan approval by the time you should. If that ends up happening, your seller may legally terminate the contract and happily keep your deposit money.

Specify which items you want to hold on to

You do not want to be the buyer who buys a house and then walks inside it to find that all the furniture are gone! Be specific regarding which items you want to stay inside the house once you close your deal. Just because the chandelier is present at the time of inspection does not mean that it will be after you close.

Know when your contract goes into effect

Most people think that a contract goes into effect the moment they put their signature on it. However, that is not always true. Many a times, a contract may become effective on a different date. By being aware of when your contract goes into effect, you can curb the chances of it becoming invalid.

Secure the signatures of everyone involved

At times, a house may be owned jointly by the spouses, or it may be owned by an entity, or something else that is not an individual. In such a case, it is essential that you secure the signatures of all the parties involved. If the signature of any party remains absent, the party may legally disobey the contract. Purchasing a house is a huge decision of life from a financial perspective. As such, you must take the task as seriously as you can, and try to get every important thing in writing.
© Home Buyer’s Legal Info 2012
HOME BUYER’S LEGAL INFO

THE LATEST...

Contract signings to buy homes in U.S.

fall for second time in 2015

Home sales are down. Could this mean we’re headed for a recession … The number of contractual agreements to purchase previously owned homes in the United States abruptly fell during the month of August for the second time this year, realty officials said Monday. The National Association of Realtors said Monday that an index of pending home sales decreased nearly 1.5 percent after a half-percent boost in July. The association noted a modest increase in the West, but said contract signings declined in all other regions. The association uses the Pending Home Sales Index -- an indicator of housing activity, measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops. Despite the August decline, the NAR noted a "healthy" increase of pending home sales over the last 12 months. Last month's contracts rose 6 percent over those in August 2014, officials said. Looks like in the overall scheme of things, home sales are doing just fine. You can read more at: upi.com

How to Avoid Common Purchase

Agreement Mistakes

When you are out purchasing a house, be sure to make your every word and action count. Especially, when filing out your purchase contract. Otherwise, things may go wrong pretty fast. A Florida couple was out to purchase a home for $620,000, but they never ended up doing so. That is because although the contract of purchase read that the property was to go for “no less than $620,000”, two appraisals made things difficult. The sellers ended up arranging an appraisal of $635,000, while the buyers got one of $560,000. The end result was termination of the contract as a result of disagreement between the sellers and the buyers. The sellers sued the buyers for breaching the contract. Their argument was that the buyers were obligated to purchase the house, owing to any appraisal having a valuation of $620,000 or higher. The buyers, on the other hand, maintained a position that they were allowed to terminate their contract, owing to any appraisal putting the valuation at something lower than $620,000. In the month of April, 2010, the Second District Court of Appeal in Florida ruled in favor of the buyers. The reason given by the court was that as the appraisal mentioned “no less than $620,000” it meant that the would-be buyers could terminate their contract in case any appraisal put the valuation of the house at a price lower than $620,000. Very often, property buyers and sellers misinterpret a contract. When the contract says one thing, they interpret it as saying something else. This is the reason why it is extremely important to address any contingency with the help of full sentence. Leaving no room for confusion in a contract is crucial. The following tips will help you remain on top of your contract:

Give yourself and others enough time

The validity of certain contracts depends upon the buyer securing finance by a specific date. You must allow yourself, and any other involved party, adequate amount of time before closing your deal. If you try to close too quickly, you may end up not securing a loan approval by the time you should. If that ends up happening, your seller may legally terminate the contract and happily keep your deposit money.

Specify which items you want to hold

on to

You do not want to be the buyer who buys a house and then walks inside it to find that all the furniture are gone! Be specific regarding which items you want to stay inside the house once you close your deal. Just because the chandelier is present at the time of inspection does not mean that it will be after you close.

Know when your contract goes into

effect

Most people think that a contract goes into effect the moment they put their signature on it. However, that is not always true. Many a times, a contract may become effective on a different date. By being aware of when your contract goes into effect, you can curb the chances of it becoming invalid.

Secure the signatures of everyone

involved

At times, a house may be owned jointly by the spouses, or it may be owned by an entity, or something else that is not an individual. In such a case, it is essential that you secure the signatures of all the parties involved. If the signature of any party remains absent, the party may legally disobey the contract. Purchasing a house is a huge decision of life from a financial perspective. As such, you must take the task as seriously as you can, and try to get every important thing in writing.