STANDARD CONTRACT APPROVED BY BUFFALO NIAGARA ASSOCIATION OF REALTORS® AND BAR ASSOCIATION OF ERIE COUNTY
FREQUENTLY ASKED QUESTIONS-PURCHASE OF RESIDENTIAL REAL PROPERTY
BY
MICHAEL J. LOMBARDO, ESQ.
I signed the Contract, but didn’t
read it carefully before I signed. After signing, I
noticed that some of the terms discussed with me beforeI signed are not reflected in the Contract or are misstated. Is it too late to make any corrections?
You need to carefully review the
Contract and then promptly discuss it with your attorney. For example, you should carefully review the
items include in the sale as set forth in Paragraph 3(D) of the Contract. If something was supposed to be excluded from
the sale but was not, report it to your attorney immediately. You should also
check dates, such as the closing date in Paragraph 14. You should discuss with your attorney any
concerns you have about meeting any deadlines provided in your Contract. There is a limited amount of time after you
sign the Contract within which your attorney will have an opportunity to
negotiate to have any changes made to the Contract. If you wait too long, it may be too late to
make any corrections or changes.
The Contract has a date for
closing. Can I plan on my purchase
closing on that date?
Generally, the date specified in the
Contract for closing is a target date, not a firm date. We will keep you informed as to how your
purchase is progressing and will let you know as early as possible when we
expect you will be in a position to close. If you do certain things, like arranging for your mover to be at the
property on the date specified in the Contract as the closing date, before we
let you know when you can expect to close, you could be compromising our
ability to have title and other issues adequately addressed by the seller and
seller’s attorney.
Now that I have signed the
Contract, is there anything I need to do between now
and the time of closing?
Yes. As a purchaser, you have the responsibility to make sure you are
performing your obligations under the Contract in a timely manner. For example, you have the obligation to make
the additional deposit, have the property inspection completed, apply for your loan commitment, arrange to have insurance in place as of the date of closing, arrange for a transfer of utilities once a firm closing date has been established, and conduct your final inspection. There
may be other obligations and time frames that apply to you and these should be
discussed with us early in the process if you are not sure what your
obligations are or the time frames that apply to you.
Will
all systems and components of the house be in working order?
Not necessarily. While the seller has the
obligation to continue to maintain the property in the same condition as it was
in on the date of your property inspection (or on the Contract Date if you do
not have a property inspection), if something is not working on the date of
your property inspection (or on the Contract Date if you do not have a property
inspection), then the seller need not fix it. Therefore, it is very important
to choose to have a property inspection, and if something is not working, then a timely objection needs to be made. You may be able to
negotiate with the seller for the seller to fix something that is not working
or to obtain a credit so that you can fix it after closing. However, if you
wait too long, you will waive this opportunity and the right to cancel the
Contract. If there is a problem
discovered after you conduct the property inspection, contact us immediately.
Can I pay the purchase price with a
personal check?
No. Funds needed for closing generally are
required to be in the form of bank draft(s) or official checks issued by a New
York State branch of a federally insured bank, trust company, savings and loan
association or credit union. If you do
not have an account at a New York State branch of a federally insured bank,
trust company, savings and loan association or credit union, you should open
one as soon as possible so that funds can be transferred to the account and
cleared before closing so that there is no delay in obtaining the bank draft(s)
or official checks.
CAUTION: THIS ARTICLE IS INTENDED TO PRESENT GENERAL
INFORMATION AND IS NOT INTENDED TO BE A SUBSTITUTE FOR CONSULTATION WITH LEGAL
COUNSEL.
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Last Update: March 27, 2011