Selling Home: What Can Break the Real Estate Agreement
A real estate agreement is based on conditions that must be met by both the seller and the buyer. In fact, a real estate deal involves many aspects that must be taken care of even after the signing of the agreement.
Being a seller, you need to be more cautious about factors that might put an end to your real estate agreement. There are certain conditions that may cause the buyer to terminate the contract and break the deal you nearly had!
In other words, not every time buyers back out because they’ve changed their minds. Oftentimes, it happens when the seller fails to meet certain conditions or fails to keep the promise.
For instance when the seller refuses to make the changes previously agreed upon! Need more information? Let us have a look at some of the common factors that may break your real estate contract quite immediately.
In every purchase agreement, there is a clause that requires the property or the house to be delivered, in the same condition as it was at the time the buyer placed the offer and agreed to buy the house.
This means that if there has been any problem or damage in between the closing and signing of the purchase agreement, the buyer has the right to terminate the deal you nearly had and without any penalty.
If the seller of the house fails to deliver a clean and good title to the buyer, he/she gets the right to terminate the sale agreement right then and there. The mere inability of the seller, to properly transfer the title to the purchaser, enables the buyer to break the purchase agreement. The rule applies throughout the United States. Every buyer has the right to purchase the property or house with a clear title.
The seller must provide a clear title to the house. If the title is not clear, then this enables the buyer to terminate it right away.
Contingencies Are Not Met
As mentioned earlier, a real estate contract is based on different clauses. Both parties are required to fulfill their end of responsibilities. The contingencies of a real estate purchase agreement may be related to obtaining financing, pest inspections and satisfactory home. It also includes the requirement that the seller must disclose all the property problems.
If the buyer fails to receive the mortgage commitment by the date in the contract, the seller can cancel the contract. If the home inspection reveals severe deficiencies calling for repair, the buyer can break the contract. Another issue is if the seller purposefully hides major problems. In this case the purchaser can back out of purchasing the property.
All of these missed commitments on the seller’s behalf or failure to disclose complete information about the house may terminate the real estate contract. This is even after the buyer has placed an offer and agreement has been signed.