What Could Render a Real Estate Contract Void & How to Correct It?
A real estate contract is a very complicated legal document that stipulates the conditions on which the sale of a property is based, and like any agreement, situations can change. If all of the terms in the contract of sale are not honoured, then the contract can be considered void, and neither party is held accountable. This could really throw a spanner in the works if you are selling and are part of a complicated chain, and with that in mind, here are some common aspects that result in a contract being void, and suggestions on how to overcome the obstacle.
No Mortgage Preapproval – It might be that a buyer assumed they would have no problems getting a mortgage, and went ahead by putting in an offer, only to find out at a later date, their mortgage application has been rejected. Sellers will generally not take a buyer seriously if they don’t have mortgage preapproval, unless, of course, they are a cash buyer. If a person finds their home loan application rejected, they might be able to do something about it if they cleared any outstanding loans, which would improve their credit score.
- Failing to Meet a Specific Condition – The seller might have previously agreed to leave certain fixtures, but when it comes to exchanging contracts, they decide they would rather keep the said fixtures, which would render the contract void. The buyer would not forfeit their deposit, as the seller failed to meet a condition, and the only way around this would be for both parties to renegotiate.
- Non-Disclosure – There might be something wrong with the property, yet the seller has neglected to state this, and should it become apparent at the time of exchanging contracts, the buyer is within their rights to pull out of the purchase and would not lose their deposit. When buying or selling property in Australia, you should use Brisbane based River City Conveyancing, a leading law firm with a good reputation and transparent pricing. This can only be resolved by the two parties involved, and very often, the price is renegotiated.
- Home Inspection – The buyer has the right to have the property inspected, and the seller can stipulate how much they are prepared to pay in the event repairs are necessary. If, for example, the inspection revealed rising damp and the expense was higher than the amount the seller is prepared to pay, they can opt out of the contract. Contracts of sale are very complex, which is why you need to enlist the services of an experienced conveyancing
- The average person knows very little about the legal complexities that are involved with the buying and selling of property, and by searching for an established conveyancing lawyer, you can move ahead with some confidence, knowing you have expert legal advice. The legal expert can make sure that the contract is as you understand it to be, and with his help, the sale or purchase will be uneventful.