First, contact a real estate attorney if you need clarification or have general questions about the language in the contract documents. If you need an attorney, we can share references with you. We use promulgated contract documents created by the TREC Broker-Lawyer committee, which comprises six members appointed by the Commission, six appointed by the State Bar of Texas, and one public member appointed by the Governor's office. Contracts can be complex, and you need a seasoned agent to walk you through the steps and pitfalls of buying a home. When I work with a buyer, and they’re ready to submit an offer, I have a system that involves 10 to 20 questions that help me tailor the offer for my client. If you've worked with me in the past, you know I send a lengthy email with questions we'll discuss before submitting an offer on a property. The structure of the offer will dictate at what points a buyer can terminate the contract. So what are the buyer’s “outs” once the offer is executed (meaning all parties have signed the contract).
- The option period - Some buyers want to request a specific number of days so they can do their diligence work on the property they intend to buy. In residential purchases, I generally see anywhere from 5-10 days, depending on the home's size, age, and complexity.
- The survey and title commitment - Typically, a buyer will want to ask for a specific number of days to object if something looks amiss on the survey or title policy. Once the survey and title commitment are received the buyer can raise questions and objections during that time. If the objections can't be overcome, terminating and getting earnest money back is possible.
- If you’re financing the purchase and can’t obtain financing in a certain amount of time, that could be an out. The lender also has requirements that must be met to obtain financing approval.
- If you’re buying a property in a mandatory homeowner's association, aka HOA, you may request a formal set of HOA documents that cover all the covenants, codes, and restrictions for the neighborhood. Once you receive the HOA docs, per the addendum, you will have 3 days to terminate if something in them doesn’t align.
Again, it's imperative to consult a real estate attorney before signing any documents if you have questions or need specific language added that may not be covered in the promulgated forms. Our team of amazing agents is here if you are considering purchasing a home. We’d be happy to schedule a virtual consultation or meet in person!
Here is my Take on the Steps You Can Take... Click on the Video Below!
