Ohio Real Estate Attorney
A Home Sale Contingency Clause in a purchase contract protects the potential buyer of a property from carrying two mortgage payments when they own another property that they are attempting to sell. In the offer phase, a contingency clause can delay the obligation to close on the property while the buyer’s current property remains on the market. The contingency clause typically provides an expiration date for an offer based on an expected sale of the buyer’s current property. In the event the buyer’s current property fails to sell within the designated time period, the offer to the seller is void. If the buyer’s home sells prior to the expiry date, then the ”home sale” contingency has been met, and the transaction moves forward.
A “settlement contingency” is a clause that enables the Buyer to make the finality and the timing of an offer dependent upon the closing of another property being sold by the Buyer. This would apply only in cases where the Buyer making the contingent offer was already under contract to sell their original property. A settlement contingency typically does not allow a Seller to accept other offers while the Buyer’s property closes or for a set period of time.
A “sale and settlement contingency” clause is appropriate in cases where the Buyer making the contingent offer is also attempting to sell another property. Since the Buyer has not yet secured an acceptable offer on their other property, sale and settlement contingencies typically permit the Seller to accept offers from other potential buyers . If the Seller receives a suitable offer from a different buyer, the initial Buyer will typically have the opportunity to waive the contingency and/or otherwise modify their offer in an attempt to maintain first position. sale and settlement contingency including matching or beating the additional buyers offer. If the buyer is unable to remove the contingency, the buyer’s offer becomes null and void. Sale and settlement contingencies often come with earnest money that is returned if the buyer cannot execute the clause because their home has not sold.
Contingency clauses can impede an FSBO Seller in the process to sell your home while you wait for a buyer to settle and close on their property. A few things an FSBO Seller should do before accepting a contingency clause:
A contingency clause can benefit FSBO buyers if your property is not selling quickly at the market price. If your market is slow or your listing has been up for a number of days, a contingency might benefit you.
Contingency Clauses are there to enable buyers and sellers mutual time to sell and acquire properties. Talk to an attorney about the clauses and make sure you include the right language that helps your property sell in the market.
The General Warranty Deed provides the highest level of protection for buyers in Ohio real estate transactions. The grantor guarantees that they hold a clear title free of encumbrances and promises to defend the title against future claims, even those predating their ownership.
A Special Warranty Deed limits the grantor’s guarantees to issues arising only during their period of ownership. It protects the grantee against claims from the grantor’s time but not before.
A Fiduciary Deed is a type of deed used when a property is transferred by a fiduciary, such as an executor, trustee, guardian, or conservator, who is acting on behalf of another party. In Ohio, fiduciaries use this deed to sell or transfer property without making personal warranties about the title.
A quitclaim deed is a legal document used to transfer any ownership interest the grantor (person transferring the property) may have in a property to a grantee (person receiving the property). Unlike other types of deeds, a quitclaim deed provides no warranties or guarantees about the property’s title. It only conveys the grantor’s current interest, if any, and does not promise that the grantor actually owns the property or that the title is clear of liens or encumbrances.
A Deed is a legal document created for the conveyance of title to real estate in Ohio. Understanding the different types of deeds available can empower buyers, sellers, and real estate professionals to navigate transactions with confidence.
Short sales are a legal sale of a property when a property owner sells the property for less than the amount owed on the mortgage associated with the property. The buyer of the property is not the lender and the proceeds from the purchase all go to the lender.
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