U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 02-06-2009, 12:36 PM
 
3 posts, read 4,971 times
Reputation: 10

Advertisements

I am in negotiations to purchase a new construction townhouse in Los Angeles county. The property has about 20 units and has been on the market for over 100 days likely becuase it was overpriced initially, but also because the property has not received FHA or Fannie Mae approval yet. We decided to include several contingencies in the contract. Do you think these are acceptable?
1. If property does not receive FHA approval prior to close of escrow, buyer is refunded all deposits and contract void.
2. If property does not appraise for sell value, buyer refunded all deposits and contract void.
3. Buyer approval of CC&Rs; if not satisfactory, buyer refunded all deposits and contract void.
4. Property inspectiion; if not satisfactory, buyer refunded all deposits and contract void.
Reply With Quote Quick reply to this message

 
Old 02-06-2009, 01:35 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 18,228,958 times
Reputation: 6343
All of those except #1 are included (or checkable) in the CA assn of realtors standard purchase agreement. If you want to write #1 in as an additional clause, I see no problems.
Reply With Quote Quick reply to this message
 
Old 02-06-2009, 02:36 PM
 
3 posts, read 4,971 times
Reputation: 10
Unfortunately, our contract is NOT the CA standard purchase agreement but rather a specific contract drawn up by the seller for this specific property... Makes me a little concerned by they didn't use the CA standard purchase agreement contract...
Reply With Quote Quick reply to this message
 
Old 02-06-2009, 04:21 PM
 
Location: Nashville, TN
1,177 posts, read 3,613,232 times
Reputation: 936
Quote:
Originally Posted by propertyvirgin10 View Post
Unfortunately, our contract is NOT the CA standard purchase agreement but rather a specific contract drawn up by the seller for this specific property... Makes me a little concerned by they didn't use the CA standard purchase agreement contract...
I would then suggest that you work with a knowledgeable Realtor or real estate attorney in order to protect yourself. It's not unusual in my area for the owner of new construction to want to use their own contract as it is in their best interests. However, if they want to sell badly enough to a qualified buyer they need to consider your best interests. It would definitely be in your best interests(and protection) to include appropriate contingencies. I have dealt with many new construction contracts and have little problem getting appropriate contingencies put in to protect my buyer.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2017, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 - Top