|
If you receive this Booklet before you
sign an agreement of sale, here are some
important points to consider. The real
estate broker probably will give you a
preprinted form of agreement of sale.
You may make changes or additions to the
form agreement, but the seller must
agree to every change you make. You
should also agree with the seller on
when you will move in and what
appliances and personal property will be
sold with the home.
Sales Price. For most
home purchasers, the sales price is the
most important term. Recognize that
other non-monetary terms of the
agreement are also important.
Title. "Title" refers
to the legal ownership of your new home.
The seller should provide title, free
and clear of all claims by others
against your new home. Claims by others
against your new home are sometimes
known as "liens" or "encumbrances." You
may negotiate who will pay for the title
search which will tell you whether the
title is "clear."
Mortgage Clause.
The agreement of sale should provide
that your deposit will be refunded if
the sale has to be canceled because you
are unable to get a mortgage loan. For
example, your agreement of sale could
allow the purchase to be canceled if you
cannot obtain mortgage financing at an
interest rate at or below a rate you
specify in the agreement.
Pests. Your
lender will require a certificate from a
qualified inspector stating that the
home is free from termites and other
pests and pest damage. You may want to
reserve the right to cancel the
agreement or seek immediate treatment
and repairs by the seller if pest damage
is found.
Home Inspection. It is
a good idea to have the home inspected.
An inspection should determine the
condition of the plumbing, heating,
cooling and electrical systems. The
structure should also be examined to
assure it is sound and to determine the
condition of the roof, siding, windows
and doors. The lot should be graded away
from the house so that water does not
drain toward the house and into the
basement.
Most buyers prefer to pay for these
inspections so that the inspector is
working for them, not the seller. You
may wish to include in your agreement of
sale the right to cancel, if you are not
satisfied with the inspection results.
In that case, you may want to
re-negotiate for a lower sale price or
require the seller to make repairs.
Lead-Based Paint Hazards in
Housing Built Before 1978. If
you buy a home built before 1978, you
have certain rights concerning
lead-based paint and lead poisoning
hazards. The seller or sales agent must
give you the EPA pamphlet "Protect Your
Family From Lead in Your Home" or other
EPA-approved lead hazard information.
The seller or sales agent must tell you
what the seller actually knows about the
home's lead-based paint or lead-based
paint hazards and give you any relevant
records or reports.
You have at least ten (10) days to do an
inspection or risk assessment for
lead-based paint or lead-based paint
hazards. However, to have the right to
cancel the sale based on the results of
an inspection or risk assessment, you
will need to negotiate this condition
with the seller.
Finally, the seller must attach a
disclosure form to the agreement of sale
which will include a Lead Warning
Statement. You, the seller, and the
sales agent will sign an acknowledgment
that these notification requirements
have been satisfied.
Other Environmental Concerns.
Your city or state may have laws
requiring buyers or sellers to test for
environmental hazards such as leaking
underground oil tanks, the presence of
radon or asbestos, lead water pipes, and
other such hazards, and to take the
steps to clean-up any such hazards. You
may negotiate who will pay for the costs
of any required testing and/or clean-up.
Sharing of Expenses.
You need to agree with the seller about
how expenses related to the property
such as taxes, water and sewer charges,
condominium fees, and utility bills, are
to be divided on the date of settlement.
Unless you agree otherwise, you should
only be responsible for the portion of
these expenses owed after the date of
sale.
Settlement Agent/Escrow Agent.
Depending on local practices,
you may have an option to select the
settlement agent or escrow agent or
company. For states where an escrow
agent or company will handle the
settlement, the buyer, seller and lender
will provide instructions.
Settlement Costs.
You can negotiate which settlement costs
you will pay and which will be paid by
the seller.
|
Equal Housing Opportunity