Real Estate Contract Questions most frequently asked…
Here are some frequently asked Real Estate Contract questions and answers to your Florida real estate contract questions:
Real Estate Contract Questions #1:
What happens if I do not get the loan?
Most Real Estate Contracts are subject to buyer qualifying for the type of loan and loan amount indicated in your contract.
If you do not qualify for that particular loan and you have completed all the due diligence required to apply for financing, your deposit will be refunded.
You must however apply in a timely manner, and supply the lender with the documentation requested.
If however you do qualify for a different loan or a higher loan amount, you are not contractually obligated to take it. You are also not required to apply with additional lenders, unless you agreed to that in your contact.
Real Estate Contract Questions #2:
What happens if the property does not appraise?
Typically when financing, the terms of the real estate contract is conditioned upon the property appraising at the purchase price.
If the appraised value comes in at less, the seller may lower the price. Or the buyer may pay the difference in cash. Or both parties may negotiate a compromise.
If the property does not appraise, the buyer is not obligated to continue with the purchase and may withdraw from the contract. In that case any deposited monies will be refunded to the buyer.
This year 2014, more than 25% of property appraisals are coming up short due to the increase in property values recently. That does not necessarily mean that the property is not worth the contract price.
As us for comparable values.
Real Estate Contract Questions #3:
What happens if I do not want the house after inspections?
Lets assume for a minute that inspections revealed deficiencies that are either serious or turn off the buyer about the property.
If your contract is subject to inspections, than yes, buyer may cancel the contract and get the deposited escrow monies refunded.
All this will need to be within the time frame stipulated in the contract.
Make sure that your agent leaves an inspection contingency in your real estate contract. Do not let your agent convince you that you must buy the property. Even on a Florida “AS IS” contract you still have the right to do inspections and choose not to accept the property without you having a penalty.
Real Estate Contract Questions #4:
What happens if I want the seller to fix the inspection problems?
This depends upon what has been agreed to in your real estate contract.
Always read your Real Estate Contract for answers to your questions.
The Real Estate Contract may have a repair clause that obligates the seller to fix deficiencies up to a certain dollar amount. In not, the buyer can renegotiate the repairs if there is an inspection contingency.
A good buyers agent will advise you of your best options.
Real Estate Contract Questions #5
Can the seller take a higher offer after I have a contract?
No. Typically, sellers have no right to do anything but wait for the buyer to perform under the contract.
I have had listing agents send an addendum for the buyer to sign making changes to the contract. DO NOT BE FOOLED! Once the buyer and seller sign a contract, the listing agent or the seller cannot change any terms without your approval.
Be smart and hire an Exclusive Buyers Agent to make sure that you are protected from giving up your rights.
It is important to have an Exclusive Buyers Agent on your side that is experienced at representing only home buyers. No secrets, no double talk. Only honest answers to your hardest questions. Ask us anything…Buyers Broker of Florida 407-539-1053