When it comes to purchasing residential real estate, few people understand the complexity of the purchase contract. This agreement contains the information of the two parties involved in a real estate transaction and determines what you are buying and how you are buying it.
After the initial contract has been signed, disputes can arise before the sale has been completed. Here is a look at some common real estate contract disputes that real estate lawyers handle.
Disputes over closing costs.
Closing costs are costs incurred when the purchase of real estate is being finalized. The buyer's and seller's costs may vary from contract to contract. Generally, however, the buyer covers property taxes, appraisal fees, homeowner's insurance, mortgage insurance, and their real estate agent's commission while the seller pays the title ownership transfer fees and their real estate agent's commission.
Any disagreement over what each party should pay for when closing a real estate purchase can result in a contract dispute.
Disputes over what is included (and excluded) in the offer.
Another top reason contract disputes arise between residential real estate buyers and sellers is the failure to disclose exactly what land, buildings, outbuildings, fixtures, and furnishings are included in the offer.
For example, certain appliances and furniture items might have been placed in a home for staging purposes only. Disputes may arise in situations where a buyer feels they are not getting what they had anticipated.
Disputes over the purchase price.
Until they have signed a written real estate purchase agreement, sellers aren't bound to accept any offer, including a contingency-free full price. Disputes can, however, arise where a seller wants to turn down an offer after signing an initial agreement with an interested buyer.
Disputes over the condition of the property.
By accepting an offer and signing the initial purchase contract, a seller commits themselves to ensure that the property they transfer to the buyer will be in the exact condition described in real estate listings. If there is a significant deviation in the condition of the property, the buyer can initiate a contract dispute.
The resolution of purchase contract disputes requires careful reading and understanding of the details of the contract. This requires the help of a lawyer that has worked in your specific state's real estate law. To avoid contract disputes when buying a home, seek out a real estate attorney. Contact a firm, such as Parsons Behle & Latimer, for more information.