Penalties For Backing Out Of Contract
What happens when you can't get financing after making an offer to buy a home? You may have second thoughts and want to back out of the contract. However, the sellers could sue you and keep your earnest money. Make sure you read your contract carefully and find any clauses about financing that could…
Understand Purchase Contract Contingencies
In purchase contracts with contingencies, like financing contingencies, sellers will often insert a "kick-out" clause. The kick-out clause means the seller can accept your offer, but if a better or "cleaner" (meaning without contingencies) offer comes along, the buyer has a limited period of time…
Negotiating New Construction Purchase From Out-Of-State
Purchasing a home from another state can be a confusing process. The developer has only given them 10 days to sign and return the contract. Hire a real estate attorney that has extensive experience with new construction purchases. Builder/developer contracts tend to be one-sided, and as a buyer you…
Building Up Grade For New Home
A homeowner is concerned about the grade leading up to their new home that the builder is working on. The builder is now stating the contract contains only an estimate in the height of the grade and they may incur additional costs. Most contracts will hold the new owners responsible for any…
Slow Lenders May Not Be Enough To Cancel Contract
These home buyers wonder if they can cancel a contract with a builder because the builder's affiliated lender is moving too slow. The buyers will have to look at the details in their contract to determine if they can cancel it. Most contracts would require you to give the sellers written notice that…
Real Estate Contracts Answer Buyer And Seller Questions
Real estate contracts often contain the answers to your real estate questions. In this article, the buyers rejected the seller's response to a request for repairs. The seller claims they never got the fax and assumed the buyer accepted their response. Now, the buyer wants to walk away, but can they…
Breach Of Contract Puts Earnest Money At Risk
What are your options when you're selling a home and the buyer puts down earnest money and later delays the closing? Can the seller keep the buyer's earnest money if the buyer has not met his or her contract obligations by delaying closing? Yes, but getting the earnest money requires keeping a good…
Buyer Beware: Always Read The Contract
Most residential real estate contracts specify that fixtures (items that are "fixed" to the walls or floors of the property) are sold with the property. While in some areas of the country washers, dryers, and even refrigerators are typically not sold with the property, these items are usually listed…
Liquidated Damages And Earnest Money In Real Estate Contracts
Some states allow for what is called a "liquidated damages" clause in real estate contracts. If a contact contains a liquidated damages clause, a seller keeps a deposit -- or earnest money -- as his or her only remedy when a purchase falls through. But if the seller has no damages, the earnest money…
Read Life Insurance Contract For Understanding
How can you find the right life insurance policy? To find the right life insurance policy for you, you should talk to your insurance agent and also read the life insurance policy document or contract to make sure it meets your needs and goals.
Canceling New Construction Real Estate Contract
Can I cancel a real estate contract? A reader that wants to walk away from a real estate deal because there are too many issues with the house, builder, and real estate agent. However, you usually can't just terminate a contract. The buyer must determine if the problems are enough to truly prevent…
Home Buyer May Lose Earnest Money
What happens to your earnest money when you decide not to buy a home? Can the seller keep the earnest money? What are some of the grounds in a contract whereby you can cancel and get your earnest money back? If your contract requires a certain type of financing and that falls through can you cancel…
While Florida mops up after Hurricane Dennis, and with Hurricane Emily on the way, here's a look at how you can protect yourself when cleaning up and rehabbing your home after a natural disaster such as a flood. After a natural disaster that creates flood damage, the demand for qualified contractors…
When a builder won't make repairs, is it OK to hold back the last payment? Will the builder then be able to put a lien on the homeowner's new house? What recourse you might have with a builder depends on the contract.
Loan Approval Letter Versus Loan Commitment Letter
A loan approval letter will generally state that the borrower is approved for a loan and will fund on the loan upon satisfaction of certain conditions. A loan commitment letter will state that a lender commits to fund on a loan upon the satisfaction of certain conditions. Both of these types of…
Can Earnest Money Be Refunded?
A home buyer put earnest money down on a home but has now changed their mind. If no contract was signed, these buyers should not be bound to buy the home and the earnest money should be returned. But if the buyer and seller signed something that would give a reasonable person the idea the buyer…
Buyers and sellers alike always want to know how to hire a great real estate agent. In a tight real estate market, it can hard to find a right agent that will give you the time you need. You want to hire an agent who is extremely knowledgeable about the housing stock in your neighborhood.
New Construction Contractor Backs Out Of Deal
A home buyer has been working with a contractor to build a new home. After the plans are set, the contractor decides to pull out of the area. The buyer is stuck finding a new contractor at considerable cost. Sam and Ilyce explain their legal recourse and what would be the best strategy to get their…
Real Estate Contract Describes Remedy For Mistakes
Real estate contracts spell out the terms for when either the buyer or seller does not meet his obligations. If there's a breach of contract, both parties should review the contract to understand the remedy for the mistake. When a dispute arises relating to a real estate contract, either party has…
Timeshare Seized For Late Payment
Timeshare properties are rather unique and the association may have greater powers to enforce their rights to collect unpaid bills that you otherwise might be used to. Your timeshare documents should indicate what your responsibilities are in paying bills.
Why do we have easements? Easements can be necessary to distribute water and other utilities to the many lots within a development. In some cases, cable companies have easements to bury cable to service a community. In other cases, easements allow the public to walk through private land to reach a…
Seller Refuses To Vacate Property
A home buyer purchased a home and agreed to let the seller's stay in the home for fourteen days. But now the home buyers cannot get the sellers to move. Having a good attorney to represent them at the closing could have helped this home buyer avoid this problem.
Seller Sued For Missing Fixtures
A home seller is being sued by their buyer for missing fixtures in a bathroom. The buyer claims they had a verbal contract but the written contract contains nothing regarding the fixtures. A written contract usually is considered binding over a verbal contract but litigation is difficult…
New Construction Contract Omits Vacant Lot Definition
A home buyer buys new construction expecting the next door lot to remain vacant per a verbal agreement with the developer. Later on, the home buyer learns that a developer plans to build on the vacant lot next to the new construction. One option is for the home buyer to buy the vacant lot next to…
Earnest Money Seals The Down Payment
Want to show the seller you're seriously interested in buying his or her home? Brokers say the best way to get that message across is to attach a large check - part of the earnest money - to your offer for purchase. Appropriately named, earnest money demonstrates the buyer's level of commitment to…
