I have a friend that is selling his house. He wants to sell it on his own and has a verbal agreement with a neighbor to purchase it. He wants my help to help him find a new home. I am more than happy to be of service.
My friend wants to know what to do to hold a home he has viewed and in which he wants to make his future home. I have asked him, as I have in the past, if he will need a mortgage and the answer was yes. I asked if he had a purchase agreement written up for the home he is selling. He said no. The verbal agreement is more than two months old! I asked when conditions will be met. He said he does not know, but the home inspection was completed last week and the neighbor has not yet looked at it. Basically, my friend is in terrible limbo and is in no position to even think about buying a new home.
This is an example as to why it is a good idea to have a Realtor represent you in a real estate transaction. When somebody wants to purchase a home they put down a deposit and write up a purchase contract. This contract denotes a time period (generally 1-2 weeks maximum) for conditions to be met and for the contract to collapse or go firm. It also denotes when vacant possession will be granted and contains a myriad of other language to protect both parties.
Without a firm purchase contract a lender will not move forward with a mortgage on a new house for my friend. There is no condition day. There is no language protecting the parties. There isn’t even a contract. What if things go sideways? Who will be to blame? What sort of recourse will be available? Who is taking all of the risk in this transaction? Who’s life is in limbo?
Realtors are professionals at what they do and work in your best interests. Thanks for reading!
By Patrick Murray Join me on Google+