Apr. 6, 2010
If you're buying or selling real estate, I have a must-read for you &helip; your contract. In fact, I recommend you read all the documents related to your transaction.
You probably won't, though. I don't have any statistics, but I bet most people skim real estate documents at best. A title agent once asked me, incredulously, "You read all the closing documents?" (Side note: Read the closing documents prior to closing. No one wants to sit around while you make your way word by word through the stack you'll need to sign to complete your transaction.)
There's a lot going on in a real estate deal – earnest money, interest rates, points, surveys, appraisals, downpayments, inspections, contingencies, prepaid interest … the list goes on. The best way to stay on top of all of it is to understand what you're agreeing to.
Your Texas REALTOR® can help tremendously. Still, take the time to look through everything yourself. You'll probably come across an item or two you don't understand. You may find provisions you disagree with. You might even uncover an error.
I've found math mistakes in closing documents in two of my real estate transactions. The amounts were in the hundreds of dollars and not in my favor.
I know that real estate paperwork does not make interesting reading. If you'd like to take your chances and skim or skip them, you might not suffer any consequences. Or you could find yourself paying a multi-thousand-dollar fee to sell your home anytime within the 99 years after you buy it. If you think I'm kidding, read this article in the San Antonio Express-News.
Do yourself a favor. Take the time to read your documents. And when you have questions, ask your Texas REALTOR®.
