Excited to buy a new home for you and your family? While purchasing a home is a fulfilling journey, you have to make sure that you understand the different real estate contingency clauses on the contract.
These clauses give protection to both cash home buyers and sellers. If the conditions are not satisfied, either party would be legally allowed to back out of the contract. Want to learn the top real estate clauses, what they mean, and how they can protect you? Check out the following article!
Also known as mortgage contingency, the financing clause gives you enough time to look for a lender to purchase a home. So, in case the bank will not approve your application, the financing contingency allows you to back out of the real estate deal without the risk of being sued. Given the protection from the financing clause, you can also claim your deposit back.
However, note that you should meet the deadline for finding financing. There’s also a specific date to ask for an extension or end the contract, or else the contingency will be forfeited. In this case, you are legally responsible for purchasing the home, regardless of whether or not you have financing.
Home Inspection Clause
One of the most common real estate clauses is the home inspection, which helps you decide whether you’ll push through with the purchase or not. The home inspector will look for possible problems both indoors and outdoors with the electrical system, plumbing, foundation, and structural components. They will also check for possible leaks and pest infestations.
With the home inspection clause, you have an opportunity to write down areas of the house that you want to be repaired first before buying the property. If the seller disagrees, you can back out of the agreement. While the terms can vary, you may also ask for more time to conduct another home inspection to ensure everything is set.
Selling Current Home Clause
Are you selling your home and planning to use the funds to get a new home? Then, put the selling current home clause into writing. With this clause, you have the right to pull out from the deal if you fail to find a buyer for your current house by a specific date. Various homeowners also add this clause to avoid the difficulty of having to settle two mortgage payments.
Early Occupancy Clause
Real estate clauses also include the early occupancy agreement. This allows you to move into the new home before closing on the purchase. However, you would have to pay an additional amount, given that you’re not yet the legal owner of the property.
Also, the home inspection must have been conducted already, and you and the seller have agreed on the things that need to be repaired before you move in. Some early move-in clauses include having your rent deducted from the total purchase amount. Consult a lawyer to know the right steps.
You may be buying a house in a specific subdivision or community. So, apart from the insurance and mortgage payments, you also have to consider the monthly homeowners association (HOA) fees. With the HOA clause, you will have a clear grasp of your monthly responsibility along with the HOA rules and regulations. It also gives you an option to cancel the transaction should you find the conditions too heavy.
Maximizing the Cash Home Buying Benefits
Planning to sell your current house at the best price possible and then move into your dream home? Andrew the Home Buyer allows you to receive a higher cash offer without worrying about extra charges and having to deal with real estate agents and other representatives. Arizona homeowners love to do business with us for the following reasons:
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When purchasing or selling a home, make sure you understand the different real estate clauses to keep you protected while trying to make an investment. If you want to get the best cash offer for your house and move into your new home fast, contact us today!