Real Estate Purchase Agreements In Ohio: Common Pitfalls And Red Flags Before You Sign

One of the largest financial deals that most people make in their lifetime is buying or selling real estate. In Ohio, this is subject to a real estate transaction. Although these contracts seem to be relatively straightforward, there are some pitfalls that can cause costly problems when things go wrong.

Understanding these pitfalls can help protect your investment from expensive problems. 

Inspection and contingency clauses 

One of the most important sections of a purchase contract is inspection contingencies. In this section, a buyer is usually given a certain amount of time to inspect a property and make requests for repairs or even terminate the contract. However, problems often arise with ambiguous or restrictive language.

For instance, some contracts can limit a buyer’s right to terminate a contract unless defects exceed a certain amount of money. In addition, some contracts can also impose strict deadlines for giving notice. If a deadline is missed by even a day, a buyer can lose valuable rights. Another aspect that sellers should be aware of is repair obligations. 

Financing terms and appraisal issues 

Contingencies for financing protect a buyer in case they cannot get financing for a house. However, there is a variation in the level of protection offered by different types of financing contingencies. In some cases, a buyer is expected to apply for financing within a certain period or accept a loan with poor conditions.

Home appraisal is another emerging problem affecting real estate transactions in Ohio. In cases where a house is appraised at a value below the selling price, a buyer is supposed to pay out of pocket unless this is clearly stated in the contract. 

Closing dates and possession problems 

Closing dates are usually flexible but hold some significance under the law. The contract can also state whether time is “of the essence” or if a breach is considered by a delay. Disputes often arise because they need more time to vacate the property or because buyers want to take possession right away.

Rent-back agreements must always be put in writing. Oral agreements can easily turn into a dispute over rent or eviction. 

Seller disclosures and “as is” language 

Under Ohio law, sellers are obligated to make certain disclosures regarding known property defects. Nevertheless, the “as-is” clause does not completely relieve the seller from their obligations. A seller who actively conceals property defects and provides false information can be held liable.

The “as-is” clause can have considerable implications for legal remedies available to the buyer if defects are discovered during the inspection period. 

Talk to a Columbus, OH, Foreclosure Defense Attorney 

Kohl & Cook Law Firm, LLC, represents the interests of Columbus residents who are in foreclosure. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can discuss remedies right away.