What Do Buyers And Sellers Need To Understand When Real Estate Agreements Go Wrong?
Posted on: 21 April 2023
Real estate transactions involve a significant amount of money, time, and effort, which makes it crucial for both buyers and sellers to understand what could go wrong and how to handle the situation when things do not go according to plan. The following is what buyers and sellers need to understand when real estate agreements go wrong.
What Are the Common Issues for Buyers?
For buyers, the most common problem that arises is the discovery of undisclosed defects in the property after the purchase has been made. These defects could be structural, electrical, or plumbing-related, and can be costly to repair. Buyers need to understand that they have the right to conduct a home inspection and ensure that all disclosures are made by the seller. In case of any undisclosed defects, buyers have the option to negotiate for a price reduction, repair, or even cancel the transaction altogether.
Another issue that could arise for buyers is the failure of the seller to fulfill their obligations as outlined in the purchase agreement. For example, the seller may not complete necessary repairs or vacate the property on time. Buyers need to understand their rights and obligations as outlined in the purchase agreement, which could include seeking legal action or negotiating a mutually beneficial solution.
What Are the Common Issues for Sellers?
For sellers, the most common problem that could arise is the failure of the buyer to secure financing for the purchase. In this scenario, the seller is left without a buyer, which could result in a delay in the sale or even the loss of the sale altogether. To avoid this problem, sellers need to ensure that buyers have secured financing before agreeing to the purchase agreement. Alternatively, sellers could consider offering financing options themselves to potential buyers.
Another issue that could arise for sellers is the discovery of liens or other encumbrances on the property that were not disclosed during the sale. This could result in legal complications and could delay the sale or even result in a cancellation of the transaction. Sellers need to conduct thorough due diligence on the property before listing it for sale and ensure that all disclosures are made to potential buyers.
In any real estate transaction, it is crucial for both buyers and sellers to have a clear understanding of their rights and obligations as outlined in the purchase agreement. Additionally, it is essential to work with a reputable real estate agent or attorney who can help navigate any issues that may arise during the transaction.
Contact a local real estate lawyer to learn more.Share