First, see an attorney before you sign an agreement. It is much easier to negotiate a deal or avoid a disaster before signing than it is after. Before signing an agreement for the purchase or sale of real estate, there are many things to consider. These are a few of them:
As a seller, if you don’t reserve the mineral rights in the agreement, then it is likely that any mineral rights will fall to the buyer. If you are the buyer, make sure you know if anyone else owns the mineral rights to any property. If you are planning to strip mine your back yard, it is wise to be sure you have all the mineral rights or you may have to share the profits.
Most of the time drainage ditches need to stay where they are located. Adjoining property owners may have rights to the direction that water flows, so do not buy a property thinking you can change or move a drainage ditch.
If you are the buyer, you want to be sure that you have gotten approval for the loan on the property so that you will be able to pay the purchase price. If you are the seller, make sure you get a release from your mortgage at closing.
Does the property meet all municipal code requirements? If you buy property without making certain that it does meet all requirement, you may be responsible for bringing the property up to code specifications.
Sometimes the seller will want to retain possession of the property after closing, making sure they will have the money for their next home before they move out all their personal possessions. The buyer may not want the seller remaining on the property after closing. The possession date should be negotiated and agreed upon by both parties. Many times the agreement may include penalties if the seller does not vacate the property at the proper time.
As the buyer, you will want to have insurance in place before you go to closing. When the deed is delivered at closing and ownership is transferred, the property belongs to the buyer. Until insurance is in place, the property could be at great risk. Make certain your insurance is effective the moment you take possession of the property
A buyer should have a provision in the agreement that permits inspection of the property. There should also be a provision in the agreement that if the inspection reveals something the buyer is unwilling to accept then the buyer should be able to terminate the contract.
What stays and what goes
The real estate contract should list items which will stay with the home after the sell. Items like washer, dryers, refrigerator, stove, window treatments need to all be negotiated before signing the contract.
These are only a few of the things you will need to look into before you sign an agreement. For more information, call your attorney or visit the folks at Nancy Chandler Associates, REALTORS, licensed in Norfolk, Virginia and they can put you on the correct path to buying or selling your property.
By Karen Vertigan Pope
Karen Vertigan Pope writes for Ciniva Systems, an award winning Virginia web design company. Ciniva specializes in web design and SEO. Ms. Vertigan Pope is an SEO Specialist with Ciniva. Ciniva Systems is in charge of SEO for Nancy Chandler Associates.