What Are Your Rights During Closing?
Buying or selling a house can be complicated. This is because closing a real estate transaction can be very stressful as both parties attempt to agree on a deal that is mutually beneficial. You may encounter unforeseen situations throughout this process, therefore, it is important to remember that both parties have buyer’s and seller’s rights to prevent either side from losing money or facing undue hardship. What are your rights during closing? The below information should be helpful.
When You Accept An Offer, Can You Keep Looking?
If you were anxious to sell your home and were worried that an offer wouldn’t come through, you may feel that you accepted the first offer too soon. However, accepting an offer doesn’t mean that you can’t look at other offers that may come in before the process is finalized. Once the contract is completed, you will be obligated to sell to the initial buyer. Remember that the seller can have a secondary buyer as back-up in case the first contract falls through for any reason. In this situation, the second buyer will automatically come under contract.
If The Seller Fails To Disclose Information, Are They Liable?
While it may seem unfair for a seller to withhold information about the property, such as a death that occurred in the home, it may not be required for them to disclose this information, depending on where the property is located. This is because disclosure laws vary from state to state, so you need to ensure that you know the requirements in the jurisdiction where you are purchasing the property. Some states require a seller disclosure statement which includes questions on a variety of topics such as whether you have the right to sell the home, details of any illegal activities that have occurred and whether there are any defects on the property.
If The Buyer’s Financing Falls Through, Can You Walk Away?
If the buyer’s financing falls through before the closing date or they are unable to obtain financing, you have the right to walk away from the deal. In addition, if the buyer needs to make a smaller down payment or alter their loan from a conventional one to an FHA loan, the seller can opt not to accept the new terms if they will negatively impact the seller.
What To Do If You Have Concerns About The Property’s HOA Contract
Some properties have an HOA that sets the rules on the property’s maintenance requirements. The HOA also charges a fee for overseeing the property. It is important that you are aware of the HOA rules and that you review their documents before the transaction closes. If you are unhappy with any of the terms in the HOA rules, you can back out of the deal as long as you file your objections before the stated date in the contract. Most states have a grace period for filing the HOA objections.
If the house appraisal doesn’t match the contract price can you back out of the deal?
If the property inspection reveals any major issues with the home, such as plumbing problems or faulty wiring, you may not want to assume responsibility for the repair bills. When this happens, and the seller is unwilling to fix the problems, you have the right to walk away from the transaction. In addition, if the appraisal value of the house is less than your original offer, you can ask the seller to adjust the price. This is important since most lenders will not lend you more money than what the property is worth. If the seller is unwilling to lower the price of the house, you can rescind your offer.
What Can You Do If The Home Doesn’t Sell Before The Closing Date?
If you are worried that your home will not be sold before the closing date and that you’ll be stuck paying two mortgages, there are a couple of options available to you. You can make a conditional offer that is contingent upon your current home being sold. This will allow you to back out of the deal within a specific timeframe. However, be aware that the seller may require you to agree to a “kick-out clause” which allows them to keep the home listed in case you decide not to buy it. This means that if they receive another offer with no contingency clauses, you will only have a short period of time (perhaps 3 days) to remove the contingency and agree to the contract, whether or not your home has been sold. Your other option is to lower the price on your current home to make it more attractive to potential buyers and provide them with an incentive to buy your home.
Resource: https://www.trulia.com/blog/