Some Important Points To Know About Real Estate Investing: Contract Clauses
For the property buyers, here is some important real estate investing: contract clauses.
“And/or Nominees” or “And/or Assigns”:
If you put the word "And/or assigns" with your name, you will get the right of assigning your contract, which as a buyer you would always wish to have. However, the word "And/or nominees" is not as wide, yet it allows you to assign the title to any trust. One important point to remember here is that the real estate investing: contract clauses must not have any anti assignment provision. If there is any such clause, then you must cross it out.
Inspection Clause:
You must make it sure that you can perform a thorough inspection before a stipulated date and no professional inspector is needed for the purpose. If after inspection you find that the things are not in shape and the seller is neither interested in fixing problems nor he is ready for price reduction, then you should have the liberty of canceling the contract.
Right to Extend:
Most of the real estate investing: contract clauses have a definite date for closing. Any delay can make you defaulter. To avoid this kind of situation add clauses like "on or about June 1st". Nobody is sure about its meaning. However, one thing is sure that it gives you a little extra time. Alternatively, you can include an extension clause for 30 days by paying mortgage amount of one month to the seller.
For the property buyers, here is some important real estate investing: contract clauses.
“And/or Nominees” or “And/or Assigns”:
If you put the word "And/or assigns" with your name, you will get the right of assigning your contract, which as a buyer you would always wish to have. However, the word "And/or nominees" is not as wide, yet it allows you to assign the title to any trust. One important point to remember here is that the real estate investing: contract clauses must not have any anti assignment provision. If there is any such clause, then you must cross it out.
Inspection Clause:
You must make it sure that you can perform a thorough inspection before a stipulated date and no professional inspector is needed for the purpose. If after inspection you find that the things are not in shape and the seller is neither interested in fixing problems nor he is ready for price reduction, then you should have the liberty of canceling the contract.
Right to Extend:
Most of the real estate investing: contract clauses have a definite date for closing. Any delay can make you defaulter. To avoid this kind of situation add clauses like "on or about June 1st". Nobody is sure about its meaning. However, one thing is sure that it gives you a little extra time. Alternatively, you can include an extension clause for 30 days by paying mortgage amount of one month to the seller.
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