Contract without Inspection

firsthousehunterAugust 19, 2009

My offer on a foreclosed home was accepted. The dealine for the contract is tomorrow, which I recieved on Monday. (wow, they move fast) As of this moment, I am unable to have an inspection due to all of the utilities not being on. The listing agent said to submit the contract, but to hold on to the earnest money until after the inspection. I don't want to lose the house, but I do not want to submit a contract without an inspection. Would I be held liable even if I don't submit the earnest money, since it's a contract that I am signing? I am a first time homebuyer and I'm very confused about this situation.

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I would strongly suggest that you have the contract constructed by a local real estate attorney. Or have the attorney check out the contract, if it is written by the bank. Most states have time restrictions for having an inspection and give you the chance to withdraw your offer based on the the inspection. Also you want to be sure that the contract would limit your loss to earnest money only in case you should not want to complete the sale of the home.
Good luck

    Bookmark   August 19, 2009 at 5:54PM
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Do you have an agent of your own? Who is preparing this contract?

I don't know what is customary where you and the house are, but here, one would submit a contract with contingencies for inspection, financing, and title review. If you are not familiar with the process, you should get professional advice.

    Bookmark   August 19, 2009 at 8:07PM
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These are the most common dates and deadlines in a real estate contract. Make sure they are in yours as a minimum.
Event Date or Deadline
1. Alternative Earnest Money Deadline
2. Loan Application Deadline
3. Loan Conditions Deadline
4. BuyerÂs Credit Information Deadline
5. Disapproval of BuyerÂs Credit Information Deadline
6. Existing Loan Documents Deadline
7. Existing Loan Documents Objection Deadline
8. Loan Transfer Approval Deadline
9. Appraisal Deadline

  1. Appraisal Objection Deadline
  2. Title Deadline
  3. Document Request Deadline
  4. Survey Deadline
  5. CIC Documents Deadline (Common Interest Community)
  6. CIC Documents Objection Deadline
  7. Title Objection Deadline
  8. Off-Record Matters Deadline
  9. Off-Record Matters Objection Deadline
  10. Survey Objection Deadline
  11. Right of First Refusal Deadline
  12. SellerÂs Property Disclosure Deadline
  13. Inspection Objection Deadline
  14. Inspection Resolution Deadline
  15. Property Insurance Objection Deadline
  16. Closing Date
  17. Possession Date
  18. Possession Time
  19. Acceptance Deadline Date
  20. Acceptance Deadline Time
    Bookmark   August 19, 2009 at 8:45PM
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The listing agent is NOT looking out for your best legal interests.

All the dates listed are critical.

Get a lawyer for your first time buying, especially with this being a foreclosure. It will be money well spent and will give you a guide for what to look for/include/exclude in the future.

    Bookmark   August 20, 2009 at 8:27AM
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