Info for Buyers Page 1

The Offer and Purchase Contract        Persons interested in purchasing a home or other real estate need important information before they contact a Realtor or the Seller of real estate.   The potential Buyer should understand that it is the Buyer that commonly makes a written "offer" to purchase the real estate. This "offer," if accepted (signed) by the Seller, becomes the real estate "purchase contract."

     This "purchase contract" is the document that should contain all of the terms and conditions of the purchase and sale of the property, including time limits for supplying disclosures and performance by both

Buyer and Seller, escrow time periods, what will happen if one party fails to perform their duties under the contract and many more essential terms and conditions. After the Seller signs the "offer" from the Buyer, both Seller and Buyer will be bound to the terms of the contract. Thus, if the written "offer" (now a contract) does not contain every single item of concern to the Buyer, you will still be bound to the terms contained in the contract.

What Happens if something is left out of the Contract? This is a common and serious problem for both the Buyer and the Seller. Both parties will be bound to the contract unless both parties agree to modify the contract or create a new one. When important terms are left out of a contract, such an omission will be to one or the other party's advantage. That party will usually be unwilling to create a new contract because it is to their advantage not to do so. If the omission in the contract is to your disadvantage, you will still be bound by the contract. If you fail to go forward with the transaction, you can, and most likely will, be sued. It is for this, and many other reasons, why you should be armed with much information before you begin your real estate search and why you should use only the most professional advisors and real estate professionals available to you.

“The number one cause of claims by buyers against sellers after purchasing property that come into our law office results from poorly drafted purchase contracts.”

“The second most frequent cause is due to the sellers’ or the real estate agents’ failure to comply with the complicated disclosure requirements.”

Kenneth Armstrong
Real Estate Broker
Real Estate Attorney

Disclosures The Seller of real property, particularly single-family homes and dwellings consisting of 1 - 4 units, is required to provide to you, the prospective buyer, a number of disclosures regarding the property and potential hazards associated with the property. These include a disclosure of any defects concerning the property, known to the Seller, which may materially affect your decision to buy the property as well as known hazardous conditions. The real estate agents, if any, are also required to inspect the property and disclose similar information. Many Sellers of real estate do not want to disclose defects concerning their property because you might not buy it if you knew of them. The Seller and the real estate agents can be liable to the buyer for failure to disclose these facts.