Understanding Real Estate Contract Clauses
Many people might argue that investing in real estate is one of the most interesting and exciting ways to save for your retirement and create a steady stream of current income today. Let’s face it, lots of people are addicted to real estate investing! I’ll admit that I’ve been swept up myself in the past.
One thing about real estate investing that makes it different than other forms of investing, such as the stock market for instance, is the fact that real estate investments are much more complicated especially when it comes to closing the sale. If you’ve ever been to a closing then you know what I’m talking about!
There is a sort of mad flurry of paperwork shooting out every which way. There’s papers on the table, there’s papers coming out of briefcases, there’s papers on the floor, there’s papers being passed around from you to the buyer to the seller to the broker to the lawyer back to you again. Initial here; initial there; sign here, and sign there… it can very quickly turn into a madhouse which is why you want to be as familiar as possible with real estate contracts before you go into closing.
That’s why I thought I’d write this article today and explain a few simple clauses that you should expect to see in a regular real estate contract. Hopefully you’ll be able to familiarize yourself with them here and therefore get a leg up when it comes time to battle during closing.
The first clause I want to talk about is the condition precedent clause. This basically says that the purchaser or the seller may want one of a few specific events to occur before a certain obligation becomes fixed. That may be confusing so let me try and give an example. Say the purchaser wants the town to approve building a new park next to your building and you refuse to purchase the building until the town has agreed to build the park.
Once the town has built the park, the purchaser will now be contractually obligated to purchase the building from the seller. You get the idea… these things will be spelled out in the condition precedent clause and obviously this clause won’t be present in all contracts.
The building permits clause is the next one I want to talk about. This is similar to the last clause in that you may require the seller to make sure the building permits are up to date or that the zoning is approved by the city before you purchase the building. These sorts of things will be spelled out in the building permits clause.
Brokerage fees clause. Most people don’t realize that brokerage fees are negotiable and not only are they negotiable between you and your broker but they can even be negotiable between you and the seller. They state which of you has to pay the fees or if you share the fees or any combination of the two. This will be spelled out in detail in the brokerage fees clause section of your contract.
Well fortunately I’ve only touched on three clauses today in this article but hopefully at least they will give you a heads up so that you understand a little bit what to expect when it comes to real estate contract clauses.
Jason Markum has been an article writer online for well over 13 years. When he’s not writing articles, he has a good time running a dinnerware pfaltzgraff web site where he also reviews stoneware dinnerware sets for your home use.
Article Source: http://EzineArticles.com/?expert=Jason_Markum
Very good and nice share. Your knowledge is very good.
Excellent read, I just passed this onto a colleague who was doing a little research on that. And he actually bought me lunch because I found it for him smile So let me rephrase that: Thanks for lunch!
I’d like to include stock volatility as a selection criteria as well as fo r instance beta. Is there somewhere I can get a list of FTSE 100 stocks and their volatilities, for eg 1 yaer? If I work it out for myself it will take me all week. Is there a website with this available?
Does anyone has any suggestions on whether or not I should start looking into IPO’s and see if I can invest from the beginning? Is there a good site that gives an overview of the IPO’s?
I’ve got this inter-school environmental speaking competition. My school’s taking part, and I’m the key speaker. I’m alright with speaking, but I’m soooo nervous >< I'm worried I won't learn it right because when I make a mistake I tend to say words that shouldn't be heard over the microphone in front of 50 other schools and 4 judges =X!
Money is the root of all evil, and man needs roots.
Thank you for sharing the info. I found the details very helpful.
Haha, great experience,dude! thanks for this great Articles wow… it’s very wonderful report.
This may be off base, but how about changing the layout every now and then? Maybe not if it won’t look right, but I just get tired of seeing the same thing all the time. My own computer has about 1000 wallpapers that randomly rotate every 15 minutes, lol. Adult ADD I guess. Good post though, thanks.
L. Shany
Fogless shower mirror
remember when I first started thinking this was more confusing than it should be
Hi,Excellent blog post dude! i am just Fed up with using RSS feeds and do you use twitter?so i can follow you there:D.
PS:Do you considered putting video to this blog posts to keep the people more interested?I think it works.Kind regards, Brock Middents
Hi,I obtain that your web log is incredibly informative and helpful and we were curious if there is really a possibility of getting More articles or blog posts like this on your website. If you willing to help us out, we will be willing to compensate you… Yours, Lili Wuebker
Wow, I never new that, much appreciated.
My mom will enjoy your site, she asked me about this just the other day.
Its time to change things up a little. I really like this site
Decent article. I recently came across your blog and planned to say I have really enjoyed reading your opinions. Any way I’ll be subscribing for your feed and I hope you post again soon.
hey,Great article dude! i am just Tired of using RSS feeds and do you use twitter?so i can follow you there:D.
PS:Do you considered putting video to this blog posts to keep the readers more enjoyed?I think it works.Sincerely, Rea Figary
thanks for the ideas , i’d love to stick to your weblog as generally as i can.have a great day~~
A friend of mine suggested to me to check out your page. This is really the kind of details I was looking for. I wish I have encountered your blog sooner.
Thank you for a very clear and helpful post. I am definitely a violator of many of these rules. I often find myself conflicted when writing a blog post because I see myself writing more than people want to read, but I feel that I have to do the subject matter justice by thoroughly covering it. I feel that by following some of these rules I end up cutting out important aspects to the discussion. I guess you have to find a balance.
Watch BBX as it went thru resistance of 1.97. Only 9 mil shares in the float and 48% of the float is short. Look for 2.50 again and alot more if this market continues higher.
Great journey and experience!
I’m going to coat-tail on what “Very Evolved” said… The way you connect to your audience is… Know who you are writing to. You need to pick a Target Audience and stick to them. You wouldn’t write to an audience of 14yr olds the same way you would write to an audience of 60yr olds.
Thx I found just the info I already searched across the whole internet and just couldn’t find. What a perfect website.
Do you consider the housing crisis is over and we have entered a post crash realty industry? I believe the economy needs to fully recover before we have enough folks confident enought to invest in new homes. In this current market its tough to make a long term investment and burden oneself with more debt with as much uncertainty is inside the air.
Ooohh, i am happy to find it thanks for sharing it here. Nice wo
Hello Thanks for posting! I really enjoyed the report. I’ve already bookmark this article.
I admire ur job!
Thank you admins.
Oh..Wonderfull place of duty and impressive in a row …will give rise to a try all the tips..Thanks…
I saw this really good post today….Thanks
HA! I am quite interest in your site. If I using this website, I can earn 100-200 USD daily. I can cooperate with you on the condition that you share 50% revenue with me. If you are interested,please email for me.
Valuable info. Lucky me I found your site by accident, I bookmarked it.
nice to be here…. thanks for share
That’s a huge pile up of Acupuncture related informations. Thanks for sharing it.