Just for the record, a contract is a legally binding document. Real Estate Agents use contracts promulgated either by the Texas Real Estate Commission or the Texas Association of Realtors. Either way, the contract is designed to protect the interests of both the buyer and the seller. So there are a variety of escape routes from a contract should the need arise.
So if you are a potential buyer and happen across a great deal, it is in your best interest to get a contract in before anyone else does. But, maybe you want another person to see the property or need to arrange some financing, whatever. A contract can be written to allow for the time required.
If a buyer has personal reasons for needing extra time an option period can be purchased. The option period is usually for 7 10 days and costs from $50 - $200 for the privilege of walking away from a contract for any reason within that time frame. But, do not choose to exercise the option on the 11th day of a 10 day option period as the contract firmly defends the seller's rights at that point.
Many contracts include a third-party financing contingency. This gives the buyer time to seek a mortgage lender and lock in a rate of financing of his choosing. This contingency allows a buyer to vacate a contract if the has have been denied financing and also if they simply can't lock in the desired rate. But, he must vacate within the time frame provided.
There is also time allotted in a contract for a buyer to review documents. These documents may include the rules and regulations of a condominium building, a survey, a sellers disclosure or other relevant articles. Again, the timeframe for review is clearly specified.
In the case of land or commercial properties a feasibility period may be specified. This grants the buyer time to evaluate all issues and determine if a piece of property will suit his specific purposes.
So with all these ways of opting out of a contract, how does a seller ever feel secure with a buyers contract? That is where the time periods come in. It is understood that taking a property off the market may cost the seller dearly. So the contract protects the seller from loss by limiting the buyer's time to exercise his options. In general, the time to be indecisive is at most a couple of weeks, during which the property may still be actively shown.
So if you are a potential buyer and happen across a great deal, it is in your best interest to get a contract in before anyone else does. But, maybe you want another person to see the property or need to arrange some financing, whatever. A contract can be written to allow for the time required.
If a buyer has personal reasons for needing extra time an option period can be purchased. The option period is usually for 7 10 days and costs from $50 - $200 for the privilege of walking away from a contract for any reason within that time frame. But, do not choose to exercise the option on the 11th day of a 10 day option period as the contract firmly defends the seller's rights at that point.
Many contracts include a third-party financing contingency. This gives the buyer time to seek a mortgage lender and lock in a rate of financing of his choosing. This contingency allows a buyer to vacate a contract if the has have been denied financing and also if they simply can't lock in the desired rate. But, he must vacate within the time frame provided.
There is also time allotted in a contract for a buyer to review documents. These documents may include the rules and regulations of a condominium building, a survey, a sellers disclosure or other relevant articles. Again, the timeframe for review is clearly specified.
In the case of land or commercial properties a feasibility period may be specified. This grants the buyer time to evaluate all issues and determine if a piece of property will suit his specific purposes.
So with all these ways of opting out of a contract, how does a seller ever feel secure with a buyers contract? That is where the time periods come in. It is understood that taking a property off the market may cost the seller dearly. So the contract protects the seller from loss by limiting the buyer's time to exercise his options. In general, the time to be indecisive is at most a couple of weeks, during which the property may still be actively shown.
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