After hunting houses for ages, worn and weary from kissing frogs that turn out to be just that - frogs, you eventually find a fairytale house you’d like to buy. You are so excited you could skip and jump. You found it, you found it, you found it!
You’ll want to get your offer to purchase in front of the seller immediately, or sooner... Okay then, as soon as possible! And in this frantic rush to get the offer signed and delivered, a lot of home buyers make a big mistake:
They don't know what they are signing.
The real estate agent (and face it - you'll probably deal with a real estate agent), will probably suggest that you use his/her "standard" home purchase agreement document. Sure, signing the real estate agent's document might be quicker, but is it best?
The real estate agent is usually employed by the seller of the property. And the code of conduct for real estate agents makes it the estate agent's responsibility to protect his/her client (usually the seller) to the best of his/her abilities. But who will be looking out for your interests?
Not even a judge has to represent the interests of two opposing parties. What makes a real estate agent so wonderful that you figure he/she will be able to give your interests and their client's interests equal consideration? Humm...
The real estate agent knows that you are excited about the house. And the real estate agent knows just how to use that excitement to his client's advantage. That is what he/she gets paid for, after all!
Here is some good advice, which you might have heard before: Read and understand the terms and conditions of any contract before you sign it.
Unless you have lots of experience in drawing up home purchase agreements, you will want a buyer's agent or a real estate attorney on your side, to review the home purchase agreement and point out all the things you should be aware of. The seller has a real estate agent AND a conveyancer on his side. Don't you think you need to level the playing field a little?
Will you be able to understand the consequences of the legal jargon stuffed into most home purchase agreements? Would you be able to specify the terms and conditions you need to protect yourself? Would you even dare to take a pen and cross out the things you do not agree with? If not, you need to get a professional to do it for you...
Mmm. I can sense that you are about to just blow me off.
That's okay. But at least read and understand your home purchase agreement BEFORE signing on the dotted line.
