Little things make a big difference in a real estate agreement
Whenever a dispute arises in a real estate agreement, a judge will typically not be persuaded by what the buyer or seller thought or said. They usually ask one question: What does the agreement say? Therefore, it is essential that you are adequately protected in any real estate agreement to avoid disputes at closing. Here are some little things that make a big difference in settling disputes in real estate agreements:
Missing keys on closing
If you are expecting a certain number of keys or any other specific item, make sure you have it in writing before you close. Without having these small details in writing, your dispute will not be held up in court. Why not just say right in the contract that the seller will provide two complete sets of keys on closing, including any locker, mailbox and garage door openers.
What chattels or fixtures are included, excluded and rented?
If you want the closet organizer, just say so in the agreement. Same with a TV bracket in the wall, curtains, window coverings, mirrors and anything else in the home that matters to you. The key here is that you should not assume anything. For example, in most resale agreements, it is noted that the buyer assumes the hot water tank rental. Yet, in many cases, the seller is also renting other equipment, whether that be a furnace, air conditioner or water softener. Be careful to make sure that a seller discloses everything that is being rented in advance and that everything is clearly stated in your agreement so that issues do not arise over this right at the closing date or afterwards.
Inspect everything when you sign an offer
A buyer must make sure that everything is working in the home on the day an offer is made. You don’t want to be in a situation where this is not done and then after closing, you (the buyer) find out that one of the burners on the stove is not working and complain, only to be denied by the sellers because the burner was broken when the deal was signed. Situations like these are usually not worth the trouble of fighting over this in Small Claims Court, so make sure you check everything in advance if possible.
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Garbage in the home at closing
Many buyers complain that the seller left the home full of garbage. In general, the buyer cannot hold back money over this unless it is clearly stated in the agreement. The buyer would be entitled to sue a seller after closing if the buyer had to pay to clean up the property. If you expect this to be an issue at closing, take photos immediately and send them to your lawyer. This can be settled amicably between the real estate agents and the respective lawyers in most cases, but the lesson here is always to check early.
When does a seller have to be out of the house on the closing day?
The agreement states that the closing can take place up to 6 pm on the date of closing. While many argue that the seller must vacate as soon as the title is transferred to the buyer, which could be earlier in the day, it is good practice for a seller to vacate by 4 pm. Buyers should be prepared not to be able to move in until the evening and plan accordingly.
By properly preparing and being clear when signing any real estate agreement, your closing should be much less stressful.
At our law firm, we do every part of a transaction safely, whether it is signing documents through a video conference, transferring funds to our trust account and arranging lockboxes on closing for the keys. If you have any questions about how to set up your closing day, please contact me at [email protected].
