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Buying or Selling a Home/Purchase agreement question

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Question
It states on the purchase agreement section J. line 123 that the Buyer MAY terminate this agreement if the property is subject to building or use limitations by reason of the location, which materially interfere with the Buyer's intended use of the property.

Does this mean the buyer can back out if their intentions were to rent the home and found out they cannot due to the HOA rules/restrictions?

To me...the key words in this are "by reason of the location, with materially interfere" but maybe I'm missing something.

Thanks!

Answer
Hello Michelle,
What you are asking is actually legal pertaining to an Indiana Contract with which I am not familiar.  I would presume that Indiana contracts have a Due Diligence clause/period during which time you are suppose to be searching out all possible flaws that would cause you to not want the property.  I would also presume that if you did not investigate and back out of the contract within this period, and then later backed out of the contract,that you would probably forfeit your earnest moneys.  It's not the Sellers fault if you failed to do Due Diligence.  This is not something which is hidden, or difficult to find out. Also if you have a Buyers Agent, not the Listing Agent, that you ask him/her about this.  This illustrates why it is advisable to have a Buyers Agent. I could be totally wrong and Indiana may not have Due Diligence in which case, I think the above probably would apply. But it still goes to a legal problem.

To find out for sure, go see an Indiana Real Estate attorney with your contract in hand.  Make sure you see a Real Estate attorney, not just any attorney.  Attorneys vary in their specialties as do doctors. I hope this helps to get you going in the right direction.  If you have any further question that you think I might be able to help with, please let me know.

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Sharon Huneycutt, Realtor, Associate Broker, GRI, e-PRO

Expertise

A lot of people who want to move to the mountains don't really realize what it might involve. For instance, here in North Georgia, if you want a mountain view, you may have to drive up very steep roads. Will you have well water (That's usually good!)? Do you speak septic tanks? Have you considered that if you want really want to get away from it all, you'll do it on a gravel road? What's difference between a Log home and a Log Sided home? How can I tell? Who takes care of the house when you're not there? Where can you stay to check it out? This is a very popular area for second homes and investment properties or when you finally decide to get way from it all, I can find your perfect property. I can answer questions on North Georgia Mountain living, housing, land, amenities, and activities. We handle a lot of foreclosed properties in our office so I have become a Certified REO Specialist. REO means Real Estate Owned and is the industry name for a Foreclosure. It refers to "owned by a bank or other corporate entity". If it involves an area of expertise I don't have, I can probably tell you what kind of an expert you do need.

Experience

We've had property in the Ellijay area for over 10 years. My husband, who is a Civil Engineer and Appraiser, and I built our own log home. We researched log homes and North Georgia for three years before choosing Ellijay. Because of the building experience and being married to an engineer/appraiser, my real estate experience is a bit more extensive than average. I also am an education freak believing that the more you know, the better off you are. My husband and I both like photography, so we drive and hike all over the mountains looking for pictures.

Education/Credentials
MHA, CMA, Licensed Realtor, Associate Broker, e-PRO, GRI, Certified REO Specialist. Realtors are required to have 24 hours of continuing education every 4 years. In the last three years, I have 180 hours so far!

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