Or a better question might be: Is Your Realtor Ready?
At Carolina Living Real Estate, we are getting ready! We are meeting weekly to discuss the nuances of the changes. Additionally there is mandatory training we have to take so that when it goes live on Jan. 1st, we will be ready.
In addition to the changes to the Offer to Purchase, our listing agreements and numerous addendum are changing to support the major changes in the Offer To Purchase.
If you are familiar with our Offer To Purchase then you are aware that we had an Alternative 1 and an Alternative 2 as choices for how we wanted to handle contingencies and the buyers ability to do their due diligence. There were a lot of gray areas that caused problems with the termination of the contract and the handling or earnest monies.
For example, there was language concerning the inspection that was written in a way that left a lot to interpretation of which there could be several.
So, our new contracts eliminate alternative 1 and is now centered around what we used to know as Alternative 2 which in short can be described like this. The buyer is using option money to buy time to do his/her due diligence.
The difference is that with the use of option money, the buyer can opt out of the contract for ANY reason. However all option monies belong to the seller!
This option money is going to be a source for much discussion and negotiation.
The best thing to do is to discuss all your options with your agent. Make sure he/she knows all the ins and outs of the new contract and can advise you appropriately.
Here are a few things that buyers and sellers should do up front and are things that used to be done chronologically during the course of the contract phases.
1. Sellers should get a home inspection up front. While the buyer will most likely get his/her own done, getting an inspection done and making repairs should enable the seller to require more option money because he/she has ensured it is in good shape already.
2. Sellers should consider purchasing a home warranty up front. This also protects both the buyer and the seller.
3. Buyers should contact a lender and be get fully qualified to buy with everything but the home he/she is going to purchase.
This is a very short synopsis of what is on the horizon. Stay tuned for more tips concerning our document changes…
