Contract Clauses to Protect You
Q - I'm in the process of house shopping. What clauses are required to protect me, as a buyer?
A - In general terms, you should have, at least, the following clauses:
Financing Clause - If you require a mortgage, be certain that you have been approved for financing and obtain this approval in writing from your financial institution.
Home Inspection Clause - Hire an experienced and certified home inspector to inspect your potential new home. A home inspector can visually inspect the foundation, the roof, the electrical box, the furnace and so on. He cannot make any guarantees but is often able to point out possible problem areas.
Clear Title Clause - You want to be certain that the owner has a right to sell and that you will have clear title to the property.
Insurance Clause - You will require insurance particularly if you have a mortgage. Check with your insurance company to be certain that this property is insurable. Occasionally, when a property has had many claims, an insurance company may not wish to continue to insure it.
These are some of the basic clauses but not necessarily all that you may require. If you are using a real estate agent, he/she will discuss and assess the situation and insert the relevant clauses. If you are doing this on your own, be sure to have your lawyer review your contract prior to signing it.