What's the harm in a little white lie? Many of us are trained to tell them as a way to minimize harm, distress or delay. In the context of property sales contracts, however, any lie - big or small - can result in enormous liability.
In any given transaction, no one is ever happy with getting less than they bargain for. When it's milk that goes bad too fast, we tend to grin and bear it. In bigger scale transactions, such as the sale of land, anything less than what was bargained for is unfair and unacceptable. Thankfully, the often rigid rules applicable to sales contracts will sometimes bend as justice requires.
Some say buying a home is the most important purchase a person will make. It's understandable then, that these sales contracts are long and contrived documents that are seldom understood in their entirety. Having an early understanding of the terms of your sales contract is important, however, as the rights and guarantees therein don't always last.
Whether dealing with a residential or commercial property sale, there is likely an endless contract full of terms we hardly understand. Beyond just deciphering what the words themselves mean, it can be equally difficult to interpret their impact on the transaction at hand. This problem is compounded by the fact that certain words, when included in property sales contracts, can trigger or deactivate unwritten terms otherwise provided by law.
Whether you're building a home from the ground up or buying one that's already there, ultimately closing the deal often hinges on an inspector's report. These home-inspection reports are meant to confirm the residential structure is in good physical condition. But, as you can probably imagine, these reports aren't always accurate. In the case of an imprecise inspector's report, who should bear the cost of any resulting injury or repair?
If you're in the residential real estate business, you're likely longing for 2005; a time before the real estate bubble burst, and just before housing prices peaked. Without a time machine, however, 2013 may have been as close as you're going to get to that 2005 feeling. We recently highlighted the upward-to-downward trend construction spending has taken since the beginning of 2013, and it appears the housing market may be following suit.