Barrington IL Real Estate - Your Barrington Illinois Buyers Agent Writes Your Offer To Purchase - Page Four
If you are Buying Barrington IL Real Estate - as your Barrington Illinois Buyers Agent I will be writing your offer. Page four deals with Insurance and Condo/Common Interests but you might want to do a quick re-cap, please follow the links below.
Buying Barrington Illinois Real Estate - Is Your Barrington IL Realtor Fully Explaining The Purchase Contract then
Page one dealt with the property you wish to make an offer and how much you want to pay.
Page two dealt with closing date and possession, disclosures, attorney review.
Page three talked about inspections and mortgage contingencies.
Property Insurance.
Can you imagine what it would be like to find the home of your dreams, pay for your inspections, wait a month or more then a week before closing call your insurance man only to find out that your nearly new home cannot be insured? What would you or could you do? Well that's another story but we are dealing with the part of your contract that safeguards you from this issue.
Your purchase contract has an insurance contingency written in to protet you in case you cannot get insurance on the property you want to buy. Within 10 days from your contract being accepted you need to contact an insurance agent to see if the home can be insured:
- If yes - wonderful we can move forward.
- If no - sad but as long as we can prove it to the seller - you can cancel the contract.
- If no but you do not do anything about it - you must buy the property.
Therefore I'll make sure you take care of this!
Flood Insurance.
When a seller lists a home for sale he must answer the question: Is the home located in a flood hazard area?
If you proceed with the contract knowing it is a flood area you are bound to close. If however you later find out that although the seller said no - that the property requires flood insurance - you can back out. Flood insurance is very expensive but for some properties it is essential. You can check a homes location relevant to flood areas at FEMA. Just enter the address.
So when does this need to be done by? 10 days again! When you contact your insurance agent he/she will be able to tell you if you need flood insurance. If your mortgage contingency date is earlier, then we need to know earlier - this is unusual but may occur.
As your agent I will be on top of this.
Condo/Common Interests.
When you buy a property that has condominium ownership - not just a condo - you are buying the buildings and a share of the surrounding land. This is known as Common Interests and you usually get a percentage share of ownership. I will explain the differences if you choose a condo ownership property.
As the buyer you are entitled to read the condo associations rules and regulations - known as the CCR's. We need to look for any unauthorozed improvements made by the seller. You should take the time to read the CCR's they will control what you can and cannot do as an owner. This may sound unfair but rules are for the good of all members to live together in harmony. Your attorney will take care of making sure all these things are attended to but we don't want surprises!
By now you should be getting the idea. We have lots of things to attend to and it would be easy for you to forget. So far we have involved your attorney, a home inspetor, a loan officer, an insurance agent, possibly a condo association and we still have lots more to do. See you soon for page 5!
Corinne Guest
Realtor & Managing Broker
Royal Advocate Realty, Barrington
Call today 847-363-3686 for real estate and relocation service.
Suburban Real Estate - Lake Zurich, Hawthorn Woods, Kildeer, Long Grove
Corinne: As you are showing, there are a large number of things to remember to do within a real estate transaction. Anyone trying to navigate a purchase on their own, especially during these challenging days, is foolish. You would think that insurance would be a "given" in the buyer's minds, but I've found that all too often it falls between the cracks and is forgotten .. no matter how many times the new buyer is reminded. It's a hugely important decision to make and not given the attention due it.
Your blog remedies that .. and serves as an important and timely reminder ...
Gene
Thanks Gene for reading and commenting. An associate of mine about 5 years ago got to the closing table with the buyers - and no insurance. It was left to the attorneys to fight it out but with no funding there was no sale.
Great overview of the buying process. Your clients are definitely in good hands, Corinne.