Now that you have found your dream home, you are of course eager to seal the deal and begin moving in. However, before the deal can be official from a legal standpoint, the contract must be signed by all parties involved in the transaction. If you sign a contract that contains errors, you may find yourself having a legal nightmare. Rather than let this happen, here are some things to watch for in your home contract.
Purchase Price
Before you sign your home contract, always make sure it contains the correct purchase price. If you sign a contract that has the wrong price, you may not have many options to get out of it, unless the contract happens to have an escape clause. Otherwise, you may find yourself paying a much different price than you expected.
Obligations of All Parties
In any home contract, there will be obligations each party will be expected to live up to once it is signed. For example, your contract may have a stipulation that the seller has agreed to install a new water heater, repair a furnace, or perhaps pay for a roof replacement. Before signing on the dotted line, always make sure any and all obligations are spelled out correctly in the contract.
Proposed Closing Date
If there is one area related to conveyancing that is extremely important in a home contract, it is the proposed closing date. Should you sign a contract that has the wrong closing date or perhaps no closing date whatsoever, expect to find yourself entangled in a legal quagmire. Since the closing date is the date when you are supposed to take legal possession of the property, having a mix-up with this aspect of your contract could derail your deal for quite some time.
What Is or Is Not Included in the Sale
Finally, never sign your home contract unless it includes in easy-to-understand language exactly what is or is not included in the sale. For example, if a home’s appliances are supposed to be included in the sale, don’t sign on the dotted line unless the contract contains this clause. Otherwise, you may be surprised at what may or may not be in your new home’s kitchen.
When signing a home contract, always look it over very carefully and make sure you understand each of its clauses. If you don’t, have an attorney look over the contract and explain any parts that are confusing. By doing so, you can avoid experiencing the problems mentioned here.
