Real estate is currently one of the most competitive industries, including in both residential and commercial transactions. It is costly and complicated to find property in California that suits your needs while remaining in your budget, and it can be tempting to move forward as quickly as possible once you find the right option. However, proceeding too quickly may prevent you from doing your due diligence and taking every necessary step to protect your interests.
One critical step in every real estate transaction is a careful review of the purchase agreement. These are complex legal contracts that can have serious implications for your financial future, and careful review should be given to all terms included in the agreement. Inadvertently agreeing to a contract that is either incomplete, inaccurate or unclear can result in legal complications, financial loss and other avoidable issues.
What should be in your contract?
Like other types of contracts, real estate purchase agreements should be custom-tailored according to the details of the individual transaction. However, there are certain basic terms that should be in every purchase agreement. These include:
- Seller assist – If you want the seller of the property to pay for some or all of the closing costs, it should be clearly outlined in your purchase agreement.
- Home inspection – It is possible to make the purchase of a home contingent on the completion of a home inspection and addressing any problems noted.
- Fixtures – Your agreement can outline whether the seller will leave important appliances and fixtures, including the refrigerator or stove.
- Financing terms – How you intend to pay for the property purchase is an important inclusion in any agreement.
- Closing – The purchase agreement should also include the date on which you expect to complete the closing and conclude the transaction.
Real estate contracts are notoriously complex and difficult to read for someone who does not have any previous legal experience. It may be in your interests to seek professional guidance when drafting, reviewing or considering a purchase agreement.
Protecting your interests
The terms of your real estate purchase agreement matter. Missing terms or terms that are not in your interests have the potential to impact the transaction or your interests after the closing. When you have appropriate assistance at every step of the real estate process, it will be easier for you to avoid missteps and protect your interests.