Non-life insurance prices can vary considerably depending on the factors. Insurance companies can use real estate history, buyer`s insurance valuation, credit score, comprehensive Loss Underwriting Exchange (C.L.U.E.). Reports, etc. to determine the insurance costs of a property. Buyers should consider the factors their insurance company will use to mention insurance. Ask specific questions about these possible factors, and if a CLUE report is used by your insurance company, you should consider subordinating the offer to purchase the property to the seller`s provision of a copy of the report to the buyer so that the buyer can forward it to his insurance company for verification. Home warranty companies offer different types of programs for the purchase of real estate. Buyers should consider the benefits of these programs and be prepared to decide whether they wish to include a home warranty in the sales contract or perhaps acquire another one outside the sales contract. NOTE: If a seller offers to grant a home warranty on the MLS offer, the buyer must continue to include it in the offer to purchase. The MLS offer is not part of the contract and the seller will not consider that the buyer wishes to have the home warranty he offered if he did not apply for it. This should be written both digitally and alphabetically to avoid confusion about the expected purchase price. This possibility should allow the buyer to secure the financing before committing to continue the purchase of the property. The specific conditions listed in the event must be carefully considered, as they will serve as the basis for the buyer`s obligation to proceed in the event of difficult financing of the purchase.
Consideration should be given to the type of loan, the maximum rate and the minimum number of years the buyer must accept to finance the purchase. In addition, the buyer must act in good faith to seek financing of the property. If they do not carefully seek the type of financing defined in the agreement, this may lead to a finding of an infringement on the part of the purchaser. Unless indicated in the sales contract, the buyer is not exempt from his obligation to proceed with the sale of a property that is not worthy of the buyer`s value. If the standard agreement does not contain such an eventuality, you should consider adding such a clause. Most buyers want to have the obligation to go with the purchase of real estate in one way or another on the results of a real estate review. The terms of this type of contingency can vary considerably from contract to contract. Some contingencies provide that the inspection must be satisfactory to the buyer. Others anticipate that if the buyer is dissatisfied with the results of the review due to material defects, the buyer and seller negotiate the correction of these defects. Be sure to check this contingency carefully to make sure it meets your needs. And remember that if the eventuality does not require negotiation, the seller has no obligation to heed the buyer`s requests for correction. And the buyer`s only option may be to cancel the contract and absorb the cost of the inspections.
This may seem simple enough, but believe it or not, an error can be made in this section of the sales contract. Be sure that the address and/or other legal description of the property for which you wish to make an offer are correct. This is especially important for buying a lot in a development. A simple mistake can make you the owner of the lot you didn`t want to own. The seller has the option of either accepting a buyer`s offer, making a counter-offer to the buyer, or refusing the offer or letting the offer expire without reacting.