Thursday, October 16, 2008
Personal Property Included and Condition of Property
I have a policy of trying to sit down and meet with my clients before they sign a binder with the real estate broker and the seller. Often, there are many items and issues that really should be discussed before the purchaser goes into contract. (This also applies to where I represent sellers and there are many tax issues they should be informed about before signing the contract of sale) One issue that comes to mind that a purchaser needs to watch out for is the property that is being left in the house, co-op, or condominium. In this day and age I usually advise my client to take a digital camera to the property and photograph the refrigerator, washer/dryer, air conditioners, chandeliers, carpeting, window treatments and fireplace equipment. I like to insert in my contracts that these items will be in "good working order" at closing and "as seen on premises". I have seen situations where for example, a refrigerator was on a list on inclusions but the sellers subsequently replaced a shiny new refrigerator with an old one that they probably picked up at a tag sale. It is best to specify “General Electric Profile refrigerator seen on premises.” The number of air conditioners and the rooms they are in should also be specified. In addition to listing items that will be included it would also be prudent to specify the items of personality that are excluded from the sale. You don’t want to get into the situation where the seller decided that he doesn’t want to take some old garbage half working refrigerator and at the closing the sellers attorney smiles at you and says: “Well, it says in the contract that all appliances will be left at the premises”. It never hurts to be specific and to deal with things in detail.
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