New Home Buying: Tips to Protect Yourself
Buying a new home can be the single, most complex and biggest transaction you will ever make. Although some home deals go without any problem, there is a possibility that you can encounter a problem during or after the home transaction that may result into a costly dispute. There are ways, however, to reduce the risk having problems and ensure a smooth and easy home deals.
Here are the tips:
Give your offer through a written contract. Once you have found a new home you to buy, submit a written offer. This will ensure that the seller, an agent, or a builder will know what you want- for them to make some adjustments to their offer. Once accepted, finalized and agreed by both parties, this will become your contract.
Read the final contract. Make sure that you read everything written on the contract as it will serve as a final agreement once signed by you and your seller. Make sure that the seller discloses all the necessary aspects of the home such as the price, down payment, repair requirements, inspection, and disputes.
It is equally important to ask your lawyer to review the provisions of the contract so that you know that you are protected before you sign the contract.
Here are the provisions that will protect you when you buy a home:
Clear Title. A title is the proof that you own the property so before you buy a home, make sure that you get a clear title so that you will not have to problems once you live in your home or decided to sell it in the future. Seek legal assistance to accord a clear title. Also, get a title insurance. This protects you from unexpected, yet probable problems such as forged deeds or liens.
A complete enumeration of the items included in the home sale. When you buy a new home, you are buying the lot and everything that is in it. Sometimes you can encounter problems when the seller takes away things that you thought are part of the sale. Make sure the contract states every item that is included in the sale. This will give you the hard proof that the items are yours.
A home inspection clause. This will give you power to terminate the deal once the inspector discovers a serious defects at the home. Insist that the contract states a provision where the seller will cover the repair expenses or the buyer will assume the repair but reducing the cost of the home, whatever is agreed.
Inspections. Many stated require sellers to disclose the full status of the properly. But it always happens that the sellers get away for the defects that they are not aware of. Make sure that you give attention to this detail since you will shoulder the repair cost if the contract does not say otherwise.
A mortgage contingency clause. It is necessary when you need to cancel the deal if ever your home loan application is not approved.
Many buyers close the deals without paying attention to the contract simply because they want to purchase a home before anyone does. Make sure that you do not commit the same mistake. Take note of these details… It will protect you in the long run.