In the spring of 2012, real estate agents in the Ann Arbor area switched to a new sales contract form for people who are buying or selling a home. Here are some of the highlights.
- Waiver of Contingencies. Older versions of the sales contract form allowed the buyer or seller to void the contract if a contingency wasn't removed by the stated deadline. The ability to void a contract if a deadline is missed is largely gone in the new contract. Instead, if a contingency isn't dealt with on time, it's waived.
- Financing. In the new contract, a buyer who needs financing must apply for a mortgage within an agreed number of days - and must also see that an appraisal is ordered. In addition, the buyer must give the seller evidence of the mortgage application and appraisal order.
- Inspections. The buyer must complete all inspections by a set date. If the buyer isn't satisfied with the inspection results, he or she must let the seller know by the deadline date. Otherwise, the inspection contingency is waived. If the buyer gives the seller timely notice of being dissatisfied, the buyer can either void the contract or work with the seller to try to resolve the issues.
- Notices. A buyer or seller now has several options for delivering offers, counteroffers, acceptances and required notices. A party can deliver these items in person, or by mail, fax, email, or other electronic means.
The new contract form is flexible. It can be modified to fit your specific needs. The attorneys at the Ann Arbor firm of Hamilton, Graziano & London can help you with the sales contract, and advise you at all stages of the transaction when you buy or sell a home.