Sub2 Contengencies
Hello everyone,
I just got JL's manual, but I am unsure of a few things. I know John says to check title if possible before going to look at a house, but what if you haven't had a chance to. If you like the house and it looks like a good deal would you add a title inspection clause to the Buy offer and acceptance? This way when you find out about all of the encumbrances on the property you can opt out? I do not see this contengecy anywhere. It looks to me that it states "after opportunity for investigation..." This sounds to me that the title investigation has already been done, but what if it hasn't?
Second,
of those of you who have taken a few houses Sub2, do you guys get a home inspection before the deal is finalized?
Any suggestions would be great.
Thanks,
baldi18
most standard purchase and sale agreement contracts allow for you to check for clear title...mine does.
if you find any liens or such, you can opt out. I'll check public records to see if anything has been filed, they usually will tell me if anything is attached to the property. And after I sign the contract, I'll do a title search.
That's why we put down $10. If we want out, we forefeit our $10, and we're out of the contract. Read the statement in the contract that states that "If the buyer should...the deposit may become the property of the seller as liquidated damages...
Good luck,
Sam
Thanks NEB and SAM for your responses. I think I know what I need to do as far as title inspection is concerned. What about the home inspection though? Until I really know what kind of problems I am looking for ,would a home inspection be a good idea to start? If I were to want one done, would I word that into the contract as well? If I got one, how long does it take to get done usually?
Thanks again,
Baldi18
Yes, a home inspection is part of your due dillengence. I don't order a tiltle search or and appraisal until after I have locked up the property, but you are purchasing the property "as-is" which means you need to know what you're getting in to as far as necessary rehab costs before you get in to it. That's you're responsibility to know.
A lot of people try and guestimate how much is needed to get a home in selling condition by acting as their own HI, but getting a HI to do it for you will help to insure nothing is missed and you won't "accidently" look over items for the sake of the "deal."