The Contract. Make sure you have a legible copy of the contract and copies of any addenda prepared by the attorneys (An addendum is nothing more than a document that adds terms and conditions to the contract which were not a part of the original contract). Generally, you will find that there will be one addendum prepared by our office on your behalf, and another addendum prepared by the Seller’s attorney on their behalf. Most important, read the contract and the addenda. If you have questions about the language, please call our office and we will gladly assist you with interpreting the terms and conditions as they apply to your case.
The Mortgage Contingency. Pay attention to the Mortgage Contingency Date. We suggest that you diary the date and call our office if you believe you will not be able to obtain a commitment by the date stated in the contract. Many contracts state that if the commitment is not obtained by the contingency date, and in the event the Buyer does not cancel the contract by that date, the contingency is waived and the Buyer is locked into the contract without the financial assistance of a mortgage. Obviously, most of us cannot afford to purchase a home without a mortgage, and therefore, it is imperative that this date is monitored closely and not waived. Please call our office and notify us if you do not obtain a commitment by the date stated in the contract.
Inspection. Pay attention to inspection dates. You must have the home inspected within the time frames set forth in the contract (or addenda). The failure to follow these dates may very well waive your rights to such an inspection. Once again, diary the dates. Your Realtors are very helpful in scheduling these inspections and I strongly suggest that you work closely with them to coordinate a smooth inspection. I also suggest that you attend the inspection. Once you receive the inspection report, we require that you provide a full copy of any and all reports and that you submit to us in writing your requests for repairs. We will then forward your concerns to the Seller’s attorney and make a request that either the items be repaired or that they issue a credit at closing. The request for repairs, if any, is within your discretion. Many times the Seller will agree to address some of the itemized requests but not all of them. Sometimes a Seller will not agree to fix anything. This process is simply a matter of negotiation. We encourage our clients not to take this step in the transaction personally. Instead, read the inspection report carefully and be realistic about your concerns. Of course, an inspection which reveals severe structural defects or major problems may in certain circumstances constitute cause to walk away from the deal altogether. Let’s hope that it never gets to that point. In any event, be sure to diary those inspection dates, including the deadlines to request repairs.