Buying a home is an exciting milestone, but the legal paperwork involved can be overwhelming. A real estate contract is a binding agreement that outlines the terms of your purchase, and missing key details could lead to costly mistakes. Here are some common red flags buyers should be aware of before signing.
1. Unclear or Missing Contingencies
Contingencies protect buyers from unforeseen issues. A contract should include conditions such as needing to secure financing approval, a home inspection, and/or the time to review strata documents (if one is purchasing a condo this can help you better understand any outstanding strata debts or upcoming significant expenses!). If contingencies are missing or vague, you could be locked into a deal with costly surprises.
2. Unreasonable Closing Timelines
A rushed closing date may leave you scrambling to secure financing, decide on any remediation that a home inspector might recommend, or not enough time to sell your current home. On the other hand, an unusually long closing period could signal potential delays or issues with the seller’s ability to transfer ownership. In a seller’s market, you might feel pressure to accept a closing date that doesn’t align with your own needs and expectations.
3. Ambiguous Property Inclusions and Exclusions
Sellers may agree to include appliances, fixtures, or outdoor structures in the sale, but if these items are not clearly listed in a contract, they may be removed from the home before the closing. Always verify what stays with the property in writing. This can also be arranged outside of a contract.
4. Unexplained Fees or Penalties
Some contracts may include additional costs such as transfer fees, excessive deposit requirements, or penalties for delayed closing. Review all financial terms carefully to avoid unexpected expenses.
5. Unverified Seller Disclosures
Sellers are required to disclose known property defects, but not all do so honestly. A missing or vague disclosure statement could indicate potential hidden problems. Always conduct a thorough inspection to uncover any issues before finalizing the deal.
We Are Here to Help
Real estate contracts can be complex, and missing a small detail could lead to significant financial or legal trouble. Working with the real estate legal team at Bell Jacoe ensures that your contract is fair, transparent, and protects your interests. If you are buying a home in BC, Bell, Jacoe & Company can guide you through every step of the process. Call 250-494-6621 or contact us here!