Purchasing or selling a home in New York requires you to scrutinize the contract to help ensure you’re making the correct decision when entering this type of transaction. Whether you’re in this position as a seller or purchaser of real estate, it’s essential to realize you are entering a legal agreement. Taking action means you promise to follow the stipulations set in the contract you’re signing. Understanding the nuances of a real estate contract is essential.
Purchasing a home
If you’re buying a home, it’s usually easier to get out of a contract if you suddenly have buyer’s remorse and don’t feel good about taking this big step in your life. However, per real estate law, you may have to pay a few penalties if you decide to not follow through with the transaction.
Selling real estate
When selling real estate, it’s usually much more challenging to get out of a contract, which makes sense. Typically, a buyer will need to end the lease on the current property where they are living or sell it. A buyer may be buying a home due to a new job, which may also entail enrolling his or her kids in a new school. If it was easy for you to get out of a contract as a seller, it could be highly detrimental to a buyer’s plans.
Deadlines and contingencies
Being sure you want to go through with a real estate deal is critical as signing a contract means you agree to abide by its rules.
Adding a contingency to a contract is the best way to ensure you can back out of the deal if specific terms aren’t met. Setting deadlines, such as delivering earnest money within a particular timeline or having an appraisal completed, is the best way to protect yourself as a seller or buyer.