Addendums To Purchase Contracts

When buying a home first and foremost we always recommend using a realtor as today’s purchase contracts have just become to lengthy and complex for most non real estate professionals other than attorneys. Since it’s most people’s largest purchase they will make it is imperative to use a realtor or at a minimum have a real estate attorney review purchase contracts.

For example the purchase contracts for the sale of homes in Texas which are promulgated by the Texas Real Estate Commission have twenty-four different paragraphs. Each one of these concerns a different part of purchase contracts. There are several of these paragraphs that require blanks to be filled in properly. If you are not familiar as Realtors and attorneys are with them you may insert something detrimental to you.

In addtion, there are dozens of addendums to purchase contracts that may be required on a tranaction. Each transaction is unique unto itself and what is required on one transaction. Here are a just a few addendums: Non-Realty Items Addendum, if this one is not completed properly it can casue a loan denial; Addendum Regarding Lead Based Paint, not filling in this one properly can possibly casue legal prblems; not knowing which addendums to use or how to fill them out properly can cause you real problems in buying or selling a home without a realtor or attoreny reviewing your contract.

Of uptmost importance even when using a realtor or an attorney is to keep everyone in the transaction informed of any changes to the contract or addendums added later in the process and prior to closing. The most important person to notify is your lender.

You may wonder why my lender, wouldn’t they know of the changes. It’s amazing to know that  in many instances your lender is not aware of any changes to the contract or addendums because neither the Realtors or the title company notify them. Depending on the changes your closing may be delayed if hte file has to be re-underwritten.

The bottom line is always use a professional when making a real estate transaction and always-always communicate with everyone involved in the transaction, buyer/seller/realtors/title agent/lender.

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