There are few things more exciting than purchasing a new home. Nonetheless, the excitement is also shared by a huge responsibility. Real estate is usually the most expensive asset that people will purchase.
You may have viewed a house and are ready to submit an offer. However, it’s important not to get carried away with excitement and to remember to carry out your due diligence.
Sometimes, the safest decision is to walk away from a deal, and here are a few reasons why:
Title issues
The one thing you want to ensure in any real estate deal is that you have clear legal ownership of the property. As the owner, you hold the title to the building. Unfortunately, title searches can occasionally reveal complex issues with the title. For example, the person selling the property may not have undisputed ownership. Your safest option in these circumstances might be to walk away.
Issues after inspection
Another crucial part of due diligence in real estate is carrying out a home inspection. This will alert potential buyers to both major and minor issues with the integrity of the building. A few holes in the plaster can be easily fixed, and this isn’t usually a reason to walk away from a deal. However, if an inspection highlights major structural issues then you may be taking on more than you bargained for.
When entering a real estate deal, it’s important to know all of your legal rights, including when you can and cannot back out of a deal. Having legal guidance behind you will help ensure that you take the right steps.