Buying a House: How to Read and Understand Real Estate Contracts
Buying a home is no easy feat. From understanding the complex legal jargon to understanding the implications of every tiny detail in a property contract, one can feel overwhelmed by all the paperwork. However, it is important to understand the documents that you are signing in order to protect yourself. A good real estate attorney can guide you through the process, but familiarity with the contracts can help you know what to expect from your new home and from your interaction with your agent. Here are tricks to read and understand real estate contracts.
The contract document details what parties own the home and what their stake in the property is. If there are multiple sellers and buyers, it may be confusing to know exactly who owns what part of the home. The Section A of a contract is a diagram detailing exactly who owns a specific part of the property. https://www.myhousesellsfast.org/we-buy-houses-Athens-ga/ offers a stress-free way to sell your house quickly.
Understand the Time Frame
If there are specific dates in which you are to move into and move out of your new home, make sure that you understand these dates. If there is no set date for either, then both parties have the right to cancel the agreement at any time prior to closing.
Know Your Purchase Price
The purchase price is written into the contract and cannot be changed unless specified by both parties. It is important to know exactly what the purchase price is and what it includes so that you are not surprised at closing. Also, if home prices have risen since you purchased your home, this can result in a drastic increase in the price of your new home.
Understand the Closing Costs
If there are any expenses or fees that you will be charged at closing, understand what they are and the discounted amount of them. There may be other closing costs such as attorney fees, transfer taxes and land transfer taxes, too.
Understand Any Property Issues
Learn about any home issues or concerns upfront so that you do not have to deal with them once the property is yours. These may include sewage backups or floods, water damage, foundation issues, termites and many more.
Read the Document Carefully
Do not miss small details like dates, names, explanations and text in parenthesis that clarify certain points of the contract. After reading through the contract and receiving a copy of the same, look back at each page that you are unsure of before signing. If you are unsure of something, ask your agent or real estate attorney.