Why is a Residential Real Estate Contract Important?

Written by Posted On Friday, 13 August 2021 07:21

What is a residential real estate contract?

A real estate contract provides the details as to a sale and purchase of a property. Specifically, among other provisions, the purchase price, deposit and financing, legal description of the property, and closing date are clearly stated. Such details are set in writing to make sure the seller and the buyer understand and acknowledge by signing the contract the terms of the real estate closing.

What other terms are typically in a residential real estate contract?

Other terms in a residential real estate contract include, but are not limited to, personal property, real estate agent information, seller disclosures, and additional provisions. Personal property may be included, for instance, if a seller and buyer agree that the buyer will purchase personal property that the seller is selling. Examples of this includes furniture and appliances. Real estate agent or broker information is listed if either or both the seller use a real estate agent or broker in the transaction. The percentage owed to the agent or broker is listed in the contract as well.

What is a Seller disclosure?

What is a Seller disclosure?

Seller disclosures are important, as the seller must acknowledge if there are any defects that the buyer should know about in making a decision as to whether to purchase the property. Such disclosures may include if there was a leak in the home and if so whether the leak had been remediated, or whether there exists a structural issue that may preclude the sale of the property.

Specifically, depending upon the results of the inspection, the buyer might want to renegotiate the price or back out of the purchase entirely due to the terms of the contract. This potential “right to cancel” section of the contract explicitly states the amount of time that the buyer has to perform an inspection, and whether this gives the buyer the right to void the contract.

How can a buyer learn more about the property before purchasing?

A residential real estate contract has an inspection period, or time frame in which the purchaser may hire professionals to inspect the property to determine whether there are any major issues that would prevent a buyer from purchasing, and if so the amount those remediation’s would cost. There is a percentage or flat amount stated in the contract to allow a buyer to “get out” from the contract should the price of the remediation exceed an acceptable cost. Mold, lead paint, flood zones, and damages to the property need to be disclosed, and if not disclosed, may be found to exist during the inspection.

Why have a residential real estate closing?

Why have a residential real estate closing?

A real estate contract is important because there must be a “meeting of the minds” in order to convey property. The contract helps to avoid any ambiguity by containing the terms of the real estate deal.  Although there may be issues that arise during the terms of the contract, having a residential real estate contract avoids potential legal disputes.

What types of costs are associated with the purchase of a residential property?

Residential real estate transactions contain, among other fees, closing costs, inspection costs, and title costs. Title searches, for example, are an essential but sometimes forgotten step in buying a house. The cost of title is typically paid by purchasers depending upon the county in which the property is located which is clearly stated in the contract. A real estate contract also clarifies who covers lien searches, estoppel fees, and survey costs which can be a deal breaker if not properly provided in the contract.

A real estate contract protects the buyer from buying a damaged property, but it can also allow the seller to be compensated for any damages found in the inspection. Particularly in “As-in” contracts, the contents of the Right to Cancel section are even more important, thus consulting an attorney is ideal.

If you are seeking legal representation for real estate, please feel free to contact us online or give us a call at 954-384-6114 today for a consultation.

Oppenheim Law | Real Estate Attorneys
2500 Weston Rd #209
Fort Lauderdale, FL 33331
954-384-6114

 

originally posted at: https://www.oppenheimlaw.com/why-is-a-residential-real-estate-contract-important/ 

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Roy Oppenheim

From Wall Street to Main Street, Roy Oppenheim is a successful serial entrepreneur and attorney focusing on Florida real estate, foreclosure defense, loss mitigation and Internet ventures.

He founded Oppenheim Law in 1989 with his wife Ellen Pilelsky and uniquely positioned the Firm as one of Florida’s leading boutique law firms in Weston, Florida.

Serving national, international, and local clients, Mr. Oppenheim has the highest rating (A-V) conferred by Martindale Hubbell Law Directory, the most respected directory of lawyers and law firms in the U.S.

In 1989, Mr. Oppenheim also co-founded and served as general counsel to ShopSmart Corp., the company that originated and owned the GNC Gold Card Program, a program that continues to this day and was one of the first cross-promotional programs of its kind.

In addition, in 1994, he co-founded Weston Title & Escrow, the oldest title company in Weston, Florida, and he currently serves as its Vice President. In 1999, Mr. Oppenheim served a one-year term on the board of directors for Catalina Lighting, a publicly traded company on the New York Stock Exchange.

Growing up in the Bronx, Mr. Oppenheim learned to be focused on success and driven to always persevere for opportunity.

In 2009, he started the South Florida Law Blog, which was voted the best business and technology blog by the South Florida Sun-Sentinel. He also serves as an expert witness on title industry practices.

Mr. Oppenheim has also co-authored two law review articles, Deconstructing The Black Magic of Securitized Trusts, published in the Stetson University Law Review’s Spring 2012 Edition, and The Emperor’s New Clothes, published in the William & Mary Business Law Review Volume 6.

Today, Mr. Oppenheim is a sought-after legal expert on issues relating to the real estate crisis and beyond. In addition to his own blog, he also has been a contributor to Yahoo! Homes, and featured on HuffPost Live, FOX News, and Lifetime TV. In addition he has been quoted in prominent national publications, including USA Today, The New York Times and Huffington Post, among others. Mr. Oppenheim also understands the power of social media, and can be found on a variety of social media platforms.

Mr. Oppenheim also speaks fluent German.

Admissions

  • Florida Bar, 1987; Member of the Real Property Probate and Trust Law Section
  • New York Bar, 1987; United States District for the Southern and Eastern Districts of New York, 1987
  • U.S. District Court, Southern and Middle Districts of Florida, 1993

Education

  • Princeton University, A.B., cum laude, 1982
  • Northwestern University School of Law, J.D., 1986
    • Member of the Northwestern University Law Review
    • Member of the National Moot Court Team

Original source:  https://www.oppenheimlaw.com/who-we-are/meet-our-team/roy-d-oppenheim-esq/ 

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