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3 Must-Have Conditions On Your Real Estate Contract

real estate contractsReal estate contracts can be complicated and even harmful to both buyer and seller if all parties involved are not careful. It’s best to work with a professional real estate law firm with experienced attorneys who can assist you throughout any property-related issue.

Here are a few must-have conditions for real estate contracts to be successful.

Must Disclose Defects
Failure to disclose defects on a real estate contract is a serious offense and can result in even more lawsuits down the line. Hopefully, no one involved with the property sale is trying to take advantage of other parties, but it happens far too often in real estate deals; someone intentionally hides a problem to either make more money or spend less. Additionally, in California, real estate agents are required by law to disclose any information about a death that occurred on the property within three years before the original sale.

Financials
Probably the most important aspect of any real estate contract is the financial information. All real estate contracts should state whether or not an offer is contingent upon obtaining financing at specified interest rates. And all the details of the obtained mortgage must be laid out to avoid any confusion. One caveat regarding financial terms is that they have to be accurate representations of the buyer’s actual financial situation. For example, if the buyer can’t afford the monthly interest rate on the house if the rate is higher than 7%, they shouldn’t put 7.5% in their offer. Such a mistake means that the seller will keep an earnest money deposit if the buyer backs out.

Closing Date
Another real estate contract essential is the expected closing time. This will state exactly how much time both the buyer and seller have to prepare before the actual finalization of the sale. Typically, the most common time frames are between 30 and 60 days to close. Deepening on whether or not the seller needs to find a new place to live, any remaining lease contracts, or job relocation issues can all affect the closing date as well. Some buyers want to finish everything within two weeks, but that can be difficult, so it’s best to work alongside real estate attorneys to find a more realistic closing date and include it on the contract.

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Although Home Sales Dropped This Summer in California, Market Remains Optimistic

In California, home sales have been steadily dropping.real estate law

The California home market entered a strange phase at the end of the 2016 summer. The market was moving much slower than normal and some higher prices led to less affordable homes, causing people to hesitate from buying.

“Demand begins to soften heading into the fall since many buyers with families buy before school starts,” said Andrew LePage, a real estate analyst.

According to the Los Angeles Times, Southern California’s median home price fell to $460,000 in August, although the median price is still about 5.7% higher than last year at this time.

“It’s not unusual for the median to decline modestly between August and September, LePage added. “In part because demand begins to soften heading into the fall, since many buyers with families buy before school starts.”

Los Angeles Daily News reports that the market did have a slow summer despite job growth and a decrease in lower mortgage rates.

On a national scale, however, the U.S. Commerce Department stated that new home sales actually rose 3.1% across the country during the summer.

Although California saw a slower summer, for now that can just be chalked up as an outlier. On average it still takes about 40 days to close on a home in California and people will surely continue to sell through the fall and into the winter.

It’s important that anyone dealing with any type of real estate law contract in California should with a qualified real estate lawyer.

These lawyers are fully experienced in property law and can assist you throughout the entire home buying (or selling) process including filling out all real estate contracts.

According to the National Association of Realtors, wholly 77% of homebuyers get inspections done before finishing a real estate deal. It’s recommended to have the home inspected beforehand to avoid any unwanted surprises once you move in or even little later down the line. Experienced real estate lawyers on behalf of the seller will encourage them to have any and all repairs done well before the house is listed.