Your first step should be to seek out experienced professionals who can inform you about the traps and represent your best legal interests. Begin with an experienced real estate agent to guide you through the initial hoops. Your agent should be able to recommend a reputable real estate lawyer to assist you in the legal matters involved in the purchase or sale of a home.There are countless legal details involved in a real estate transaction, but some can be larger problems than others. We’ve outlined two legal clauses that are commonly misunderstood and can cost you money when they are not worded correctly. Handle these carefully ensure a successful real estate sale or purchase!
Home Inspection Clause
Real estate transactions can be sabotaged simply because of the wording of the home inspection clause. This clause originally said that buyers have the right to withdraw an offer if the home inspection yielded any undesirable results. However, this was known to backfire when buyers took advantage of it, using some non-issue in the inspection as an excuse for changing their minds. It was unfair to sellers who had poured time and money into what they believed was a sure deal. They not only could have missed out on other offers in the interim, but their home could unfairly be considered a “problem home.” In addition, the seller would now have to shoulder the expense of continuing to market the property. All of this adds up fast.
To avoid this potential problem, the clause should be reworded to indicate that the seller has the option of repairing any problems the inspection might indicate. With this small change in wording, both buyer and seller are protected.
To ensure this clause is fair to both the seller and the buyer, work closely with a lawyer with experience in real estate transactions and all the nuances that can affect the outcome of the transaction.
Home buyers have the right to add a survey clause to the real estate contract on the home they’re interested in purchasing. If you are the seller, be aware that if you have added an extra room to your home or a pool to your property since the last survey was produced, your survey will no longer be considered up-to-date and the buyer may request that a new one be drawn up-at your expense. The price of this process could be anywhere between $300 and $800 depending on the nature of the property.
Your real estate agent is responsible for providing you with the most recent survey of your home. The buyer then has right to decide if it is acceptable. Experienced agents should offer you reliable counsel if an issue develops with this clause, but it is advisable to talk to your lawyer if you’re at all unsure of the potential ramifications. Keep in mind that the wording of the Survey Clause can cost or save you thousands of dollars.
This article alerts you to two of the many contract details that can potentially cost you money and even you to lose the sale of your home. Consult with your agent or a lawyer to avoid these two traps. We have many more articles with similar information that can help you avoid potentially costly mistakes, and they are all available to you at absolutely no cost.
Be sure to have money in hand when considering investing in commercial real estate. You are going to need a down payment and the money to pay for closing costs. You will also need money to cover other fees that will be required to finalize the deal. Banks are more willing to lend the money to someone who has money invested that they could lose.A tip for buying commercial real estate is to understand the tax implications of the property before the purchase. The tax burden will vary widely from location to location even within one city, so understand what this tax impact will have on your bottom line before signing the contract. Do not get stuck in a property where the taxes will make you default on the loan.Consider the resale potential of any commercial property before putting in an offer. Sometime in the future, you will want to sell the property you are about to purchase, so you need to consider any factors that could make this difficult such as nearby planned developments, noise pollution levels, crime statistics and the age of the building.To make sure you get the most out of a commercial real estate investment, don’t only consider apartments. There are a wide variety of commercial properties to invest in, from office buildings to trailer parks, and it’s best to consider lots of options so that you can get the best deal available.When attempting to get financing for your commercial real estate purchase, make sure not only that you have all the necessary documents, but also that they are updated and accurate. If you don’t have a solid plan with all of your ducks in a row, lenders are not likely to take a risk on you. Do all your homework, and be able to answer all of their questions without hesitation.Do not enter any commercial property agreement without having an attorney look over the documents prior to you signing them. This attorney should specialize in commercial real estate deals. This is going to protect you from several negative threats that may be invisible to the untrained eye. It may cost you a bit of money but it will save you from disaster.Lenders are going to want to be assured that you are successful in running a business. You are going to need to prove this to them by providing financial statements for you as well as your business. If you can show that you are good at what you do, the lender is more likely to offer you the loan that you need.Make sure that you find out the crime statistics in an area before purchasing a commercial property. Criminals often target commercial properties as they usually contain large quantities of valuable goods inside. If an area has a high crime rate, it could be difficult to find retailers who want to rent your commercial property purchase.Fluctuating interest rates pose one of the single greatest threats to commercial real estate investors. Current economic conditions can make rates rise and fall with shocking unpredictability, which leaves investors open to the possibility of drastic increases in the interest rates. Consider this when you start to shop for properties, and evaluate your long-term options.Commercial real estate can be a great investment. Once you learn your way around the world of commercial properties, you will become even more successful. Following the suggestions above, you will have many tips in your arsenal that will allow you to make the most money possible from your investments.