When it comes time to sit down and sign the closing papers on your new home, you hope that all goes well and nothing keeps you from getting the keys to your new dream. Keeping a close eye on your contract will help things to go smoothly. Here are five examples of wacky real estate clauses.
1. Strange Inclusions - Common inclusions for a real estate contract inlcudes things like light fixtures, curtains, etc. Usually these things are discussed prior to closing but if you aren't sure about who takes what, then definitely have a conversation with the buyer/seller. Howerver, we have heard of occassions where the seller wanted to leave their dog! Or how about this, a family cemetery on the property. These are inclusions you don't run across everyday, but it goes to show that details are important.
2. Estate Deals - In real estate law, life estates are deals that are only good for the life of a particular person. So, let's say a husband dies and leaves his estate to his wife and instructs her to leave it to their children. This can complicate things when trying to sell the property or even take out a mortgage on the property. When it comes to complicated legal situations you might be better off as a buyer to keep on looking.
3. Escalators - Escalators are clauses in contracts that help buyers lock into a purchase when there is heavy buying competition. For example they can say we'll beat other offers by a certain dollar amount. The problem with these clauses is the appraisal price and the offer can be far apart. Sellers should make sure the buyer can prove they can make up the difference between the purchase price and the appraisal price with their own cash.
4. Seller Contingencies - Beware of the seller contingency if you are a first time home buyer. Seller contingencies often contain language that says a seller can back out of the deal if they can't find another place to buy. Likewise the buyer can back out and buy something else if the original deal doesn't move forward. Granted this is a safeguard for sellers, but can be a disappointment if you had your heart set on a particular property.
Jeramie & Christa Taber
2630 Memorial Blvd
Murfreesboro, TN 37129
Direct Phone: 615-533-8323
Office Phone: 615-896-5656