Buying a home should proceed without any drama. Unfortunately, some homebuyers encounter unexpected problems that delay the closing or derail the purchase entirely. This is something to consider when putting together your real estate contract.
There are many possible events that could pose trouble for your real estate deal. Here are a few potential issues that a contract may provide solutions for.
New damage to the home
Sometimes a property suffers flood or fire damage after a buyer has made an offer but before the closing. A contract clause should allow you to walk away from the purchase if the home you want experiences too much destruction.
The seller has not moved out
Sometimes home ownership will change but the occupant of the home has not. To avoid conflict with a seller who has not vacated your new property, your contract could establish when you take possession of the home. For instance, your contract may have a post-possession clause allowing the seller some time to stay in the house even after closing.
Alternatively, you might move in before you finish the purchase through a pre-closing possession addendum. However, this may cause legal problems with the seller if you cannot secure a mortgage loan.
The death of the seller
Sometimes a sick or elderly seller dies before the purchase is complete, or a sudden accident causes the death of the seller. A contract provision may divert the seller obligations to a designated heir. In fact, you could use a contract to name someone to take over your duties in case of your incapacitation or death.
There are many issues your contract could cover. Do not hesitate to look at potential problems to address when drafting a purchase agreement.
