Ohio Real Estate Contracts
Ohio Real Estate Contracts
Whether acquiring residential or commercial real estate, with or without an existing structure, or land upon which to build a building, it is always good practice to have an attorney involved to prepare the contract or at least review it before you sign it. Many people assume that the realtor must write up the contract. That is not true. The individual on the other side of the transaction and his or her representative are not looking out to protect your best interests. The contract language is extremely important and could vary greatly depending upon which side drafted it.
The real estate contract should be unambiguous and thoroughly address all issues. Is the buyer borrowing money to purchase the property? Is the purchaser’s obligations contingent on him or her being able to obtain the necessary financing? If a financing contingency clause is to be included, the seller wants to make sure that the buyer has a limited number of days to both apply for financing and obtain financing approval. The buyer wants to make sure that the contract requires the seller to provide a general warranty deed. What appliances, shelves, fixtures, invisible dog fencing, etc. are included with the deal? What about window coverings, drapes and ceiling fans? The contract should specify this information. The contract should also address what happens if the property is damaged after execution of the contract and before the actual closing. A firm acceptance date and closing date needs to be included in the contract to protect the seller, so that the potential sale does not drag on indefinitely. Does the buyer have a right of inspection before the closing? Also, the contract should clearly state if the seller is paying any of the buyer’s closing costs.
Although everything is negotiable, different standard practices exist in different parts of the state, and one should be aware of these standard practices. In some parts of the state, it is standard practice for the seller to pay for buyer’s title insurance coverage. In Montgomery County, it is standard practice for the seller to pay for up to $300 of buyer’s title insurance cost. The methodology utilized to prorate the taxes can change the closing costs considerably. In most counties, taxes are prorated based upon the real estate tax bills, in which you pay your taxes one year in arrears. In Montgomery County, the standard practice is to use the short-proration method in which taxes are prorated six months in arrears. The contract needs to indicate whether taxes are to be prorated using the long-proration method or the short-proration method. It will mean one party being credited either six month’s worth of taxes more or less than using the other proration method.
An experienced real estate attorney can review a real estate contract rather quickly to make sure that it properly addresses all necessary issues and is not slanted to benefit the other party. Meeting with an Ohio real estate contracts attorney to prepare or review a proposed real estate contract before execution can save you a lot of potential headaches and save money to avoid any future disagreements.
Contact An Experienced Ohio Real Estate Contracts Attorney Today!
If you are considering either buying or selling a piece of real estate don’t hesitate to contact Holzfaster, Cecil, McKnight & Mues at (937) 293-2141 to schedule an appointment to be sure your legal interests are fully protected! Or, if you would prefer, you can use our form below to contact us online. In addition, we have an emergency phone number (937) 760-4357, which we answer around-the-clock. We will analyze the facts and protect your legal interests.
