If more specific risks are identified during due diligence, they are likely to be covered by appropriate compensation in the sales contract, under which the seller promises to reimburse the buyer a book base for compensation liability. In addition to an open review by the buyer, the lender must conduct an assessment. If the valuation is not equal to or greater than the reported value of the home, it is the buyer`s purchase cost to offset the difference or negotiate a lower purchase price. The lender may also require the seller to impose repairs before closing before closing at the seller`s expense. If this is not met, the buyer is allowed to terminate the contract. Due to the many requirements for a real estate transaction and the need for information from the buyer to ensure that the purchase price matches the value received, a purchase of the property is made after the buyer has the opportunity to check the property, check the books and registrations, arrange financing and verify any charges on the property. , as for example.B. Normally, a seller will not authorize such a detailed investigation unless the buyer takes the purchase of the property seriously. Therefore, the buyer signs a contract and deposits serious money with the fiduciary agent to show the seller that the buyer is seriously considering buying the property. However, virtually all real estate contracts have contingencies that allow the buyer and sometimes even the seller to terminate the contract at no cost if the investigation reveals that the property is not worth the price. In many cases, the price can be renegotiated if there is a problem. But if you make a formal offer to buy the house you want to buy, you will end up reading and filling out a lot of paperwork that contains the terms of your offer. Apart from obvious items like the address and purchase price of the property, here are some nuanced items that you should be sure to include in your real estate purchase contract.
In legalese, these are called contingencies written in your real estate contract. In addition to the urgency of the inspection, a repair effort is sometimes included. This indicates a maximum dollar amount for necessary repairs. If the inspection indicates that repairs cost more than this dollar amount, the buyer may terminate the contract. In many cases, repair costs are based on a certain percentage of the selling price, for example. B 1% or 2%. A real estate sale contract (aka- kauf-und Kaufvertrag, Kaufvertrag) is a contract for the sale of real estate that defines the legal rights and obligations of the buyer and seller, both with regard to the property itself and the real estate transaction.