Buying a new home means making many critical decisions. You must not only find a property you like, but you must also determine if it is a wise investment.
You also need to ensure your purchase agreement contains sound provisions that are fair to all parties. Since you are probably not a real estate agent or lawyer, you might not know which terms are fair and which are not.
Kick-out clauses
Most of the time, sellers who accept a contingent offer take the home off the market. However, if the purchase agreement contains a kick-out clause, the seller can continue marketing the property after accepting your offer. If someone else makes a better offer without contingencies, the seller can kick your contingent offer to the curb and sell the home to the other party.
Kick-out clauses are often beneficial to home sellers, but buyers should beware of this clause.
Arbitration clauses
Arbitration as a form of dispute resolution can be beneficial for all parties involved in a typical legal dispute. However, arbitration does not generally favor home buyers, according to a Business Insider article. A purchase agreement that mandates arbitration could take litigation off the table, possibly narrowing your options to resolve a potentially serious dispute.
You do not have to agree to an arbitration clause and may successfully negotiate to remove it from the agreement.
Since Virginia does not require home buyers to obtain representation, you may have planned to forego legal help. However, experienced guidance is often the ideal way to protect your interests. In the long run, it could save you money and help your budget stretch even farther.