Protecting Your Deposit

Dated: March 31 2017

Views: 785

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"What happens if I make an offer on a home and then change my mind or am unable to purchase it? Do I just lose that money?"

The simple answer is "no". If you and your Realtor work diligently, your money will be protected. A standard Purchase & Sale Contract has built-in contingencies. These contingencies are the safeguards that will protect your deposit.

These contingencies may include financing and building inspection. For example, if you write an offer and then can not purchase the home because you can not get financing you can withdraw your offer as long as you and your Realtor submit a termination addendum in the time frame that your contract permits.

Similarly, if items come up during the building inspection that you were not anticipating and are not comfortable with (roof needs to be replaced, foundation needs repairs etc.), you can (1) request that the seller fixes those items (2) request that the seller financially contributes towards those repairs or (3) submit a termination addendum in the time frame that your contract permits.

These are just a couple of contingencies that can be included in a Purchase and Sale Contract. Other contingencies may include water quality, radon...or anything else that is important to you.

Work with a professional Realtor that can help you prepare a Purchase & Sale Contract. If the contract is written correctly you and your assets will be protected.

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Dan Cypress

Dan is analytical in nature, as his MBA would suggest, but nine years ago he transitioned out of the world of accounting and financial management and into real estate. His deliberate and rational ....

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