Real estate developers have many different details to consider when writing a contract. How much will the property cost? What will you need to do to make a profit in this venture? Do you have the protections you need if something goes wrong? The answer to many of these questions comes in contract review. Why is contract review so important for developers?
Contract review allows you to negotiate with greater confidence.
While there are some clauses that work in most contracts, no pre-formatted contract will be a perfect fit for every real estate transaction. As a result, you should negotiate with the seller to create a contract that meets your needs, and that negotiation depends on careful review. Is the price fair? Who will pay the closing costs? Are the existing fixtures, heating equipment, windows or appliances included in the purchase? A detailed review of the contract allows you to negotiate these points.
Contract review helps you protect yourself from risk.
Contract review does not only give you a stronger position as a buyer. It can also protect you from liability in the future. Examine the contract carefully to determine your responsibilities as well as the responsibilities of the seller. This allows you to fully understand the costs and repairs that fall to you and which the seller must fulfill.
Review can help you negotiate how you will resolve disputes.
Because of the risks involved with real estate purchases, disputes can arise in a wide variety of different ways. Did the seller fail to disclose necessary information during the purchase process? Did they fail to meet their responsibilities before closing?
When something goes wrong, it is essential to know how you will resolve these disputes. For example, contract review could help you determine whether an arbitration clause—which will prevent you from suing the seller—is actually a good fit for this sale. Your attorney can help you negotiate a satisfactory method for resolving disputes.
If you want to ensure that your real estate contract benefits you and helps you achieve your goals, speak to an experienced attorney. They can review your contract and help you negotiate the details to protect yourself and your new venture.