Protect Yourself Fully By Adding These Contract Conditions When Writing A Purchase Offer
As you wrap up your house-hunting efforts after finding the house you want to buy, your next step will be to create a contract called a purchase agreement. This agreement gives you the opportunity to specify the amount of money you want to offer for the house, and it allows you to include contract conditions as well. These conditions are designed to benefit and protect you in some way, and here are three important conditions you may want to include on your contract.
Interest rate specifications
Most purchase agreements for houses include a condition that states the sale will only go through if the buyer can obtain financing for the house. While this is a common and normal condition, you could take this one step further to protect yourself even more. You could add in that your offer is only good if you can receive a certain rate of interest for the loan. For example, you could write that the offer is good as long as you can get a loan with a 5% interest rate or lower.
With this condition, you would have a legal way out of the deal if the bank will not approve you for a loan with a 5% or lower interest rate. This is an important condition to consider adding, simply because a higher interest rate will result in a higher monthly payment for the mortgage loan.
Conditions that must be met for the sale to go through
Secondly, you may want to add some conditions to the contract that require the buyer to do certain things. For example, you may state that you will buy the house if the buyer fixes a certain thing in the house, or if the seller leaves the appliances. The contract you write up is a unique contract, which means you can ask for anything that you want. The seller always has the right to reject your offer or counter it, but he or she might also accept it.
What the seller must pay
While it is more common for the buyer to have to pay for all the closing costs, you can request that the seller cover some of them. Again, this is something the seller might not agree to, but it does not hurt to ask.
If you want to fully protect yourself when buying a house, you should include these types of details in your purchase agreement. To learn more about writing a purchase offer, talk to a real estate agency in your city.