In real estate, one rule reigns supreme: thoroughly review contracts. Unlike real estate agents or brokers, attorneys can modify the actual language of the contract and draft additional special provisions and addenda. Before signing any agreements, contact our Texas real estate attorney for contract reviews.
Purchase and Sale Agreement Review Benefits
Negotiating real estate transactions allows both the Buyer and Seller to gain benefits. Some common adjustments and issues our Texas real estate attorney edit include:
- Appraisal Contingencies
- “As Is” Language
- Providing Survey “As Is”
- Revocation of Offer Deadline
- Eliminating Specific Performance
- Seller Financing Terms
Buyer Rights
Before signing a purchase or sale agreement, the buyer has the legal right to inspect the listed property. Additionally, the buyer may bring in a professional inspector of their choosing to conduct the inspection. Accordingly, the Seller is legally obliged to permit the Buyer’s inspection and provide a disclosure statement outlining the property’s condition. As a Buyer, it is of the utmost importance you both review the Seller’s disclosure statement and seek your own inspection of the property. This inspection may forewarn you about potential property issues, as well as provide you with negotiating leverage.
Noteworthy Purchase and Sale Agreement Sections
Purchase and sale agreements include numerous lengthy sections peppered with legal jargon. The following are the most crucial sections and legal jargon to pay close attention to:
- Earnest money: the reasonable amount of money to be delivered to the title company listed in the agreement. In the event of a breach of contract, this amount will transfer to the seller of the property.
- Title & Policy Survey Section: negotiable between the listed parties. This section is particularly lengthy and complex, with multiple deadlines listed. Our Texas real estate attorney will expertly walk you through this portion of the contract.
- Escrow: the procedure in which the title company is to return the earnest money.
- Closing Date: date agreed to by both parties; on the day of closing, ownership of the property transfers from the Seller to the Buyer.
- Possession: after closing, the Buyer has the legal right to possession of the property unless otherwise negotiated.
- Settlement of Expenses: both parties can negotiate the allocation of expenses, and the title company will draft a statement based on the agreed allocations. At closing, the statement will be provided. It is important to have this statement reviewed and compared to the stated settlement and other expenses section of the contract.
- Prorations: this section outlines the specific allocation of expenses of the sale to be divided between parties. Most notably, this portion includes applicable real estate tax payments.
- Casualty Loss: this section determines which party bears the risk of loss in the event the property is damaged before closing.
- Default: this portion outlines the events that would occur in the event of a breach of contract.
- Representation: this portion ensures warranties and representations in the contract continue past closing. This section also permits the Seller to continue to show the property to other potential buyers unless otherwise negotiated.
- Termination Options: this portion permits the Buyer to terminate the contract for any reason, unless otherwise negotiated.
Consult our Texas Real Estate Attorney
Real estate contracts become complicated quickly, even for the most experienced property sellers and buyers. Both buyers and sellers are encouraged to consult legal counsel before signing. At AZ Law Firm, our Texas real estate attorney will advise and assist you in every stage of the transaction. Give us a call for a free consultation, and we’ll begin to review your purchase and sale agreements.
Our clients receive individualized attention from an attorney, not an assistant or paralegal. Although we handle a wide range of legal issues, our attorneys are limited to practicing a few practice areas to give you the specialized care you need. We are compassionate attorneys that will listen closely to ensure your voice is heard and to implement potential strategies that most other attorney will miss. Call us for a free consult with our Texas Real Estate Attorney to see why we vastly differ than most law firms.
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