Whenever we are representing a seller in the sale of the seller’s home, it is critical that the proper contingencies are included in the Purchase Agreement.
In this post, we’ll review some of the more common Ohio home seller contingencies.
Sellers should always stipulate that the buyer is purchasing the property “as is” and the seller is not making any warranties regarding the property. Also, it is critical that, in the event the Buyer fails to purchase the property, the deposit will not be refundable and will belong to the seller. We also encourage our sellers to negotiate that the buyer pays for all closing costs, including the cost for paying the owner’s title insurance commitment, and title commitment policy, and any other seller closing costs. (Typically, the seller pays for the title insurance commitment and policy, which we have seen cost anywhere between $1,500 and $2,000 in Ohio.) The buyer should definitely be responsible for the costs of all inspections and any of their attorney fees and costs.
We encourage our sellers to consider adding the following contingencies to the Purchase Agreement. Doing so should help protect their position. (Please understand that this is not an exclusive list. It’s merely a list of the most important contingencies that we recommend):
- Seller makes no representations concerning the condition of the Property on the date of execution of this Real Estate Purchase Contract. Buyer has inspected the Property, is relying solely on such inspection with respect to the condition of the property, and hereby agrees to purchase the Property “AS IS.”
- In the event that Buyer breaches any of Buyer’s obligations under the Real Estate Purchase Contract (hereinafter referred to as “Contract”), Seller shall have the sole and absolute discretion to terminate the Real Estate Purchase Contract, and will have the right to place the property back on the market.
- Buyer will pay for the costs of fees for legal services to prepare the Purchase Contract. With respect to any other fees or services, Seller and Buyer will be responsible for their own costs to review and prepare any additional documents or hire any necessary professionals necessary for the closing.
- The approval of the documents by Buyer’s and Seller’s attorneys within three (3) calendar days of receipt of the documents by the attorneys. This contingency shall be deemed to have been waived at the end of the three (3) calendar days unless Seller or Buyer notifies the other of their election to declare the Real Estate Purchase Contract to be null and void due to the attorney’s disapproval of the documents.
- The earnest money deposit will not be refunded to Buyer and will belong to the Seller in the event the Buyer fails to purchase the property or the Buyer fails to fulfill the terms and conditions of the Contract.
- Buyer will be responsible for paying all of the costs of all inspections.
- Buyer will be responsible for all of the closing costs including the cost for the owner’s title insurance commitment and policy and any other Seller closing costs pursuant to the Real Estate Purchase Contract.
- Buyer to take possession of the property upon closing.
Questions About Selling a Home in Ohio?
Are you in the process of selling a home in the state of Ohio? The Law Office of Tom Somos, LLC can be a helpful resource to you. Give us a call at 614.488.2270 or click here to request additional information.