Conditions on Offers
Here are some examples of Conditions that can be included in an Agreement of Purchase & Sale:
Financing. This means that the sale is contingent on confirmation of your ability to secure financing to pay for the home. Even if your financing is pre-approved, it can be important to opt to include a condition on financing. The typical time for this condition to be met is three to five business days.
Inclusions and Exclusions. These might include appliances and certain fixtures or decorative items, such as window coverings.
Good Working Order. Appliances are often included in the Agreement. A clause is inserted whereby the Seller warrants and represents that the appliances (and other mechanics) are in good working order on closing.
Survey. An existing or up to date survey is requested.
Home Inspection. The inspection is conducted by a professional inspector of the Buyer’s choice and at the Buyer’s expense (usually costs $400 to $600). The purpose of the inspection is to ascertain the condition of the home and its mechanical systems, including items that may not be obvious to the untrained eye. The inspector’s report will identify areas for attention and the level of urgency of repairs. We will work with you to ensure that you understand the home inspection and any implications it may have.
We encourage all Buyers to accompany the inspector through the house in order to ask questions and learn about the property in more detail. This is a great opportunity to understand any deficiencies and / or potential improvements. The inspector will summarize the findings and give the Buyers a copy of a written report and recommendations.
Based on the findings of the report, a number of things might happen. The Buyers may void the contract (which is quite rare). The Buyers might accept the property “as is”. They may give the Sellers a list of repairs to make. They may ask for an abatement (a reduction in the offer price).
Further Visits. You’ll likely want to be able to return to the property to measure for furniture, show it to other family members, or get quotes for renovations and improvements. We also like to to a pre-closing inspection of the property to help ensure everything is as it should be. We usually recommend requesting three visits prior to the closing date.
If you have any questions about Conditions on offers or would like to discuss how we might be able to help you achieve your real estate goals, feel free to contact us.