Still More Things To Consider Before Your Real Estate Closing

Still More Things To Consider Before Your Real Estate Closing

Author: Karen Vertigan Pope

First, see an attorney before you sign an agreement. It is much easier to negotiate a deal or avoid a disaster before signing than it is after. Before signing an agreement for the purchase or sale of real estate, there are many things to consider. These are a few of them:

Operational systems

For the buyer´s protection, the seller should warrant that everything is in good working order, such as plumbing, air conditioning, heating and any appliances that are to be left in the home after the sale.

Restrictions

Are there any previous restrictions on record as to the use of the property by private covenants or agreements, such as home owners associations? or deed restrictions? As the buyer, you need to know what you can and cannot do to the property.

Building requirements

Many times properties are restricted by what, if any, building can be done on the property. Prior agreements, or covenants or municipal restrictions may apply to the property and it is buyer´s right to know these. There may be requirements that a new buildings have a minimum square footage, minimum set backs distances from roads or streets or boundary lines. Some places restrict the erection of fences or hedges along edges of properties.

Damage

A provision should be made as to who is responsible for any damage or casualty that occurs until the agreement is signed at closing.

Contingencies

Many things are considered contingencies: If my house sells... if my loan is approved... if my company transfer is approved. These should be specified in the contract so that if something does or does not occur as stipulated, either party may terminate the contract.

Lead Paint

Federal law requires that the seller of any house build prior to 1979 must give the buyer disclosure regarding lead-based paint. Failure to provide this notice may mean the buyer can terminate the contract

Pro-rations

Utilities, taxes, rent, special assessments are all items that are subject to pro-ration at closing. For example, if the closing is in the middle of the month on an apartment building, chances that are the tenants have already paid rent for the entire month and the buyer would be entitle to a portion of the proceeds.

Mold

Is there mold in the house? Is there a water problem in the basement or the crawl space? Is there a leak in the roof? Is the plumbing sound? Ask these questions before you buy.

Chemical contamination

Has the property ever been used for chemical production? For example, was it ever a meth house? Because of the possibility of chemical contamination, the buyer will want to know this.

Water rights

If the property is undeveloped, make certain you have water to your property.

Karen Vertigan Pope writes for FindBuyers.com FindBuyers.com, a unique approach to home buyer and selling. At FindBuyers, we use a dynamic 30 point matching system that works much like a dating site. Go to FindBuyers.com FindBuyers.com to sign up for this service operating in the Washington DC and Mid-Atlantic areas. Our exclusive matching technology also allows for 2-way communication to whatever extent both parties desire, including the buyer´s or seller´s real estate agents!