What Exactly Are Buyer and Seller’s Rights During a House Closing?

You have just received an offer, in the process of closing a deal and  the sky started getting dark. What options do you have as a buyer or a seller? You might be quickly swept by the frenzy and excitement of selling or buying your home easy. What happens when you start having second thoughts after the end of the honeymoon phase? Do you agree to continue with the deal until the end? Knowing your rights as a seller or buyer will help in making sure you don’t lose any money or go through random battles when closing a house deal.

Seller: You can still consider other options even after accepting an offer

Accepting an offer doesn’t mean that you are barred from looking at other proposals being presented to you. However, once you sign the official documents, you are under a legal contract and hence obliged by law to sell to that particular buyer. This means other contingencies are legally excluded. But to be on the safe side as a seller, it’s good to have a second buyer (as a backup plan) just in case the first buyer fails to honor the contract because of one reason or the other.

Buyer: What if a seller withholds any critical information about the property?

It will be very disingenuous if a seller fails to give all the details of the property. The disclosure laws are different from one state to another and even in cities. Look at the disclosure law in the area you want to buy your home so that you know your buyer’s rights. Knowing your fate legally will save from lengthy battles should you end up buying the wrong property.

Seller: Buyer went through a financial setback before the closing date

As a seller, your buyer might be unable to get the needed financing by the closing date that was indicated in the signed contract. You as the seller you are legally allowed to cancel the contract and take another. The unfavorable change in a buyer’s financial capability can give you the open the door to walk out of the deal.

Buyer: Dealing HOA contract issues

HOA regulations and fees are unavoidable and can be very stressful. But buyers don’t have to deal with the HOA headache thanks to the one buyer protection act. A buyer is supposed to get the HOA documents from the seller and review them. If they find anything they are not happy with, they have the freedom of backing out (as so long as it’s done before the objection date stated in the contract).

Buyer: Issues from the home inspection

In case issues are brought up after the home inspection is done like poor drainage, faulty wiring, defective heating system, etc., and the seller is not willing to fix these issues, then the buyer can walk out of the deal. Also, if the property being sold appraises for less what you are offering, then you have three options: wait for the seller to adjust the price, rescind the offer or look for more money.

Do you have a question about buyer or seller rights? Click here to contact Desert North Realty today!