Wise Advice from the Seasoned Real Estate Attorney
Attorneys in the Home Buying Process
Attorney Review:
Retain an attorney and make sure that the attorney receives a copy of the contract as soon as possible. All contracts contain an "Attorney Review" or "Attorney Modification" paragraph. These provisions enable the attorney to attempt to eradicate or at least modify any undesirable aspects of the contract. However, there always is a time limitation involved with respect to the attorney modifications provision - usually five business days, but some contracts allow the attorney only three business days to prepare any changes. The sooner you get the contract to the attorney, the more opportunity the attorney has to discuss the contract with you and to propose any necessary changes.
Property Inspection:
All contracts also contain a provision granting the Buyer an opportunity to have the home inspected. If the inspection reveals any defects, the Buyer can request (through an attorney) that the Seller make repairs and/or provide an appropriate credit at closing. If the Buyer is not satisfied with the Seller's response, he or she can usually invalidate the contract and have the earnest money refunded to him or her.
A potential drawback in requesting repairs is that some Sellers may hire an unqualified person to do the minimum work necessary. One way to prevent this problem is to ask your attorney to stipulate in his letter to the Seller's attorney that the work be done by licensed and bonded contractors and tradespersons. Further, that the work be evidenced by documentation faxed to the Buyer's attorney prior to the closing. Finally, a condition should be added that the work must be done to the Buyer's satisfaction, and that the Buyer has the right to re-inspect the premise once the work has been completed.
Please keep in mind that the property inspection provisions in contracts also contain time restrictions. Most contracts state that the home inspection be done within five business days of acceptance of the contract. It is important to note that the time limitation applies not only to the inspection itself, but also to any requests of the Buyer for repairs and/or credits.
Thus, you should not wait until the last day of the time limitation to have the home inspection. It is recommended that you be present at the inspection, and that you ask the inspector to fax the inspection report, or at least a summary of the report, to your lawyer's office. You should then contact your attorney as soon as possible and discuss with him those problems you want addressed.
Information provided by Thomas J. Murphy, Attorney at Law
Preferred Real Estate Attorneys
Tom Murphy, 773.233.8500
Tim Grace, 312.943.0600
Kent Novit, 312.332.2407
