Continuing with my top ten tips for buying real estate series here is Tip Number 6.
Tip #6: Sign A Contract That Protects You
This tip requires a sub-headline, if you will
- Work with a reputable, experienced real estate attorney
Make sure that the contract you put on a house allows you to arrange financing, inspect the home and negotiate any problems that you uncover. Ensuring that the contract you sign will minimize potential legal battles will allow you to enjoy your new home without the headaches and strain of legal battles. In Hoboken and Jersey City for example, most licensed real estate agents use a standard contract created by the New Jersey Association of Realtors. This contract is written to protect both buyer and seller, and has special contingencies built in to allow a home buyer to secure financing, feel good about the home inspection and conduct a survey or title search to name a few items covered. So don't worry too much about the language in the contract, this will all be changed shortly. Here's why:
In NJ there is what's called a three day 'attorney review period'. This means that any contract you sign is not binding until your real estate attorney has reviewed and accepted the terms put forth. When the time comes, and you sign a contract you will turn it over to your attorney who will make many changes to it. In fact, most real estate attorney's have their own addendum ready to go that's been tested many times to include the changes they are comfortable with.
During the review period the contract is not binding to either party. This means that should you change your mind you can decide not to go through with the sale, however, remember that the seller can also continue to receive offers, therefor this means that until the 'Attorney Review Period' is over, no one is locked in. Something to keep in mind, and good to know, especially if you really want your home and want to make sure you get it. You can give your attorney a heads up to move the review period along.
The three day review period does not end per say in three days. If you read a real estate contract you'll see that it's three business days, and that the review period can be extended. Attorney review is officially over, once both parties come to an agreement and sign off and all changes.
Till next tip!
First time home buyers would find this advice most helpful. Getting everything in writing protects not only the home buyer but also the real estate agent. Be sure all the provisions in the contract are clear in order to prevent future misunderstanding.
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