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Published: Sep-2007
Conditions in an Agreement of Purchase and Sale give
buyers the time to satisfy themselves regarding any concerns that may
affect their purchase of a home or property; common conditions are for
home inspections to assess the physical state of the home and property, or
conditions for arranging financing.
Some conditions can save a buyer a lot of grief and
money for example; a couple finds their dream home, unfortunately its
someone else’s dream home as well. A bidding war erupts and in order to
win this home the couple decide to dispense with any conditions and put in
a firm offer to purchase the home for $400,000. The sellers accept the
couple’s offer and the home is to be theirs – but – the bank appraises the
home at $375,000; the bank will only lend the couple the percentage of
money they need based on appraised value of $375,000, not the $400,000
they have agreed to pay for the home. Since the couple put in a firm
offer, they are bound to come up with the difference on their own, or risk
not closing and face losing their deposit and possibly a lawsuit for
breaching the contract. A carefully worded condition of financing in the
Agreement of Purchase and Sale, and the couple could have avoided this
problem.
Many consumers also believe that if they make an offer
conditional on specific items they can get out of an Agreement of Purchase
and Sale if they are not satisfied for any reason; this is a very
dangerous assumption. Interpreting conditions and demonstrating good faith
are topics of many legal proceedings. It is imperative that you work with
a realtor who understands not only how to compose a condition but also how
to explain the effects of such a condition to the buyers and the sellers.
Find an agent that will put your best interest first!
If I can be of any help to you, your friends,
relatives or associates, please do not hesitate to
contact me. Your referrals are greatly appreciated. |
