Ciancio Ciancio Brown, P.C.
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Breckenridge (970) 285-3077 Toll-Free (800) 746-3560

Denver (303) 395-4773 Toll-Free (800) 746-3560

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How can I ensure a real estate purchase contract is sound?

If you are purchasing a home in Colorado, you no doubt have concerns about whether your real estate purchase contract is legally sound. In this case, having access to the right information is crucial when determining the validity of a contract. Failure to do so could jeopardize your purchase, as well as cost you exorbitant amounts of money in the long run.

The American Bar Association illustrates some of the common problems buyers of real estate run into when reviewing real estate purchase contracts. For instance, language should be present that explicitly spells out who will be responsible for repairs should the property sustain damage prior to closing. This can be extremely important, as disputes will most likely arise about who is financially culpable for any repairs or maintenance required as a result. Without clear language, closing the deal will most likely be delayed indefinitely.

Payment for the survey (which is crucial when buying a home) is another important factor that must be included in the purchase contract. In some cases securing a mortgage loan is contingent upon having a survey conducted, and an additional survey may even occur just prior to closing to ensure the condition of the home hasn't changed. In this case, it should be made clear at the outset who will be responsible for these costs.

There are a few other matters that should be included. Of course you'll need to know when the home actually comes into your possession, in addition to if property use is restricted in any way. If there are restrictions on the property (such as it's not permitted to be used commercially) it's extremely important that the homeowner be aware of this fact before committing.

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