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Changes to Template Real Estate Purchase Agreement (Part 1)- Th Inspection Addendum

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I estimate 99% of real estate transactions are documented via the standardized real estate purchase agreement.  For the great, great majority of cases all works well.  But, effective August 1, 2016, the template has formed in three major ways, one of which I will address this week.  I will address the other two notable changes in following weeks.


Previously the inspection addendum permitted the buyer to cancel the purchase agreement for any (and realistically no) reason based upon the findings during the inspection.  The time frame for the inspection to occur within used to be calculated based on business days.  That apparently was too complicated, so the standard form is now based on calendar days.

Another notable addition is language adding options for cancellation of a purchase agreement should the buyers' home not sell.  I think the language is pretty good in the new form, but the new form has weird language that the buyers can represent they have the ability to perform on the existing purchase agreement without regard to the sale of their existing home.  Nice language, but it does not clarify whether the buyers can cancel the purchase agreement if their existing home does not sell.


One glaring omission is template language addressing the relatively new practice of a party selling a house contingent on them finding a suitable house.  I quite like this practice as it lets sellers test the market for their home, but this can be a tricky scenario to address in a purchase agreement. 


There are more changes that could be addressed.  But, every real estate transaction is its own animal.  A real estate agent's commission is built into the transaction, but spending a few hundred dollars on a lawyer is, from this lawyer's perspective, certainly worth it.

The material contained herein is provided for informational purposes only and is not legal advice, nor is it a substitute for obtaining legal advice from an attorney. Each situation is unique, and you should not act or rely on any information contained herein without seeking the advice of an experienced attorney. All information contained in links are the property of the linked site.


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January 2, 2018 9:02 AM
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Some people want to purchase their own property and mhrwriter review services instructed them to accept the agreement for any property. People need inspection about any real estate which they want to purchase. After accepting agreement people can purchase land easily.

Dan has handled formation of international corporations through single member LLC’s looking to invoke all the corporate protections enjoyed by the most complex companies in the world.

 

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Dan has extensive experience representing and helping real estate buyers, sellers, agents, and business clients weave through the maze of residential real estate and commercial transactions.

 

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