THE REAL ESTATE PURCHASE CONTRACT (or OFFER-TO-PURCHASE) NOT INCLUDING REFERENCE TO ALL THE NEGOTIATED TERMS AND CONDITIONS
You see, dear potential real estate investor, when negotiating the contents or terms of your purchase agreement with the seller, you MUST make it a point to include and document ALL the Terms and Conditions you mutually and finally agree on with him.
"BUT WHY MUST THIS BE SO?" YOU MIGHT ASK!
Well, because problems or challenges ALMOST ALWAYS result from purchase agreements that imply, but do NOT state specifically, the EXACT Terms and Conditions previously agreed upon by the parties.
WHAT THEN ARE SOME OF THESE IMPORTANT TERMS AND CONDITIONS TO BE DOCUMENTED?
Well, the following is just a summary of some of the important terms and conditions to be negotiated on and documented. These include but are not limited to having or negotiating a proper closing date to give you enough breathing room and maneuverability, the payment of proration items such as unpaid land rates, property taxes, outstanding utility bills, closing costs etc.
Other important terms to be negotiated, agreed upon and documented are : engaging the services of an independent closing agent such as an Escro Agent, proper financing agreements with the seller if any, as well as any term and condition worthy noting down.
Therefore, as a real estate investor, you must make sure that you exhibit professionalism in your real estate dealings by documenting every term and condition you ultimately agree on with a respective seller. If you don't do this, then you stand or risk loosing big time because of certain omissions in the purchase agreement you could have easily addressed prior to signing the contract.
So, the next time you settle to buy a certain piece of real property, You must make sure that you avoid this deadly mistake no. 2 discussed herein as well as Deadly Mistake No. 1 discussed in the previous blog post.
So, until next time, go well in your real estate searching endeavors.
NOTE: Read Deadly Mistake No. 3 -> HERE
I love to hear your comments. Both positive and negative ones are all welcome. Therefore, go right ahead and drop a comment below.
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