Considering the purchase of a new home? There are some legal issues to understand before making an offer.
- Offers: In Michigan, a signed purchase agreement is considered a binding contract. However, buyers still have certain opportunities to back out prior to finalizing the deal.
- Inspections: The buyer is usually allowed to conduct an inspection. Make sure your offer includes language which will allow you to walk away from the deal for any negative reason, even cosmetic.
- Financing: The agreement should contain specific language making the purchase contingent upon financing, including detailed loan terms. If you are not able to acquire a loan under those conditions, you have no obligation to continue with the purchase.
- Appraisal: An appraisal will provide the home’s true market value. This third-party, independent analysis of the home’s value will assist in the negotiation of the sales price and the financing terms.
- Additional Contingency: If the new home will replace your existing home, you can ask that the sale be contingent upon the selling of your current home in order to preserve financial liquidity.
It is important that these and other material terms are included in your offer, and it’s always wise to have an attorney review your offer before it is presented to the seller to ensure that your specific interests are protected.
Your home is one of your biggest investments. If you need someone to review your purchase offer, we’re here to help. Contact us today at 248.477.6300.
