Are you aware of what happens after a Markham real estate property offer is accepted? If you are a first-time buyer or selling your first Markham home, you may have navigated the property viewing stage successfully, but now it’s time to dot the i’s and cross the t’s. Your next step in the property transaction is the Agreement of Purchase and Sale.
What Is a Purchase and Sale Agreement?
The Purchase and Sale Agreement is a legally binding contract that will list all the necessary details of the Markham real estate property transaction, including when the offer was accepted and the parties involved. This document will include a lot of important information, but one central section that could impact the entire transaction consists of the contingencies.
What Are Contingencies?
Contingency clauses are the conditions to be met to legitimize the Markham real estate transaction. These clauses can protect both the buyer and the seller before the exchange is official. You can choose which clauses to list in the agreement that must be met for you to proceed. If the other party involved does not fulfill your contingencies, you have the freedom to walk away.
Contingency Rules in Markham Real Estate Agreements
While you can choose the clauses to include, there are some guidelines to contingencies to avoid wasting time on a deal that will not work. You will want to follow these rules:
- All clauses must be recorded to make them legally binding
- Clauses must be attainable, measurable actions
- Time limits need to be applied for accountability and to ensure the deal is closed within a reasonable time frame
Common Contingencies Included in Purchase and Sale Agreements
You can choose specific clauses that meet your personal needs in the Markham real estate property transfer. However, there are necessary contingency clauses you’ll commonly find in agreements:
House Inspection Contingency
This requires the seller to have their property inspected by a professional for signs of damage. If you are the seller, you will receive a time-frame in which you will need to make necessary repairs to the property. If you fail to complete them on time, you may need to lower your property sale price, or your buyer may walk away from the deal.
This clause will protect you if you are buying a new Markham real estate property. You can ensure you are first able to obtain a mortgage loan approval from a lender before you firm up the deal. If you are a seller, you can seek proof of a pre-approval before accepting an offer in order to save time when trying to close your home sale.
Lawyer Review of Status Certificate
If you are buying a Markham condo, you can arrange a small window of time for your lawyer to review the condo’s status certificate after making your price offer. A status certificate is a document listing details of the condo unit and building’s condition and associated rules, rights, and regulations for the new owner to follow. The property owner or unit seller will offer the status certificate so your lawyer can confirm that you are not making a risky investment.
Let an Expert Markham Real Estate Agent Help You
Selling and buying a Markham real estate property can be pretty complicated. That’s why you should rely on an experienced real estate agent who understands the market and knows how to navigate the property transaction process. If you are planning to hit the Markham real estate market, call Martin MacFarlane today.