P&S before Inspection??

Question

Hey Y'all

So we have an accepted offer on our first property. It's a multi in our home town and by all accounts a pretty good deal.

As we are unfamiliar with this whole process please indulge my newbie question. Is it  normal to be required to sign the P&S before we've even had the home inspection?  The inspection is scheduled for this Monday, our offer was accepted yesterday, we received the P&S already today and I'm being told by my agent that this is standard and we have 48 hrs to sign and return it.

I'm feeling rushed. What if the inspection comes back that the whole house has cooties or that it's built on an old Indian burial ground or that it's haunted...? Do we still have the legal right to back out based on an unsatisfactory inspection after the P&S has already been signed??

Thoughts??

Sunny Vig · Answer

Put some really good contingencies to back out if you have to from the p&s, like this deal is contingent to inspection, financing, or what ever makes you feel secured. Just send it in but not without the mentioned clauses. This should protect you.

Robert Andrade · Answer

Thanks @Brian White  The P&S has recently been reviewed by a RE attorney. He assures me I'm totally covered with all the contingencies I require. I guess the rush feeling is just anxiety of purchasing our first property.  Seems like it took forever to find the right property and has an offer accepted and now that we have its like a truck speeding downhill with bad breaks..  **deep breath**  It'll be fine.

Brian White · Answer

Robert, Eric made some really good points.  It really can go either way in MA. If your not chatting with an attorney you should consider it.  Check out this article.  http://massrealestatelawblog.com/2009/08/21/massac...

I often share this article with new investor clients that don't use attorneys, or have objections to my "Client Team" approach to transactions.  Have you discussed with your agent that your feeling rushed?

I would encourage you to reach out to them.

Best of luck!

Brian White

Eric Black · Answer

Hi Robert,

Read the P&S very carefully. It is not uncommon to sign it before the inspection however there MUST be an inspection clause in the P&S that gives you a certain period of time after the inspection to back out. In some states you can have a clause that allows you to get out of the contract for any reason for a certain number of days, for example even here in (The Socialist Republic of) California it's 17 days. Not sure what MA law is so you may want to check. If you don't see an inspection clause or a clause that allows you to get out for any reason, don't sign it. And if there is a clause of either kind, make sure the number of days allowed is realistic. 1-2 days may not be enough time to get a report back and determine if it's still a good deal, especially if there are repairs that need to be made. On the other hand, you can't expect 30 days to make a decision.

Again, read the contract VERY carefully and ask your agent to point out where these clauses are. As long as they are there, and there are no penalties for cancelling the contract, then you have nothing to worry about in regards to signing before the inspection is complete and you've had a chance to review the report.

Cheers!

Eric

P&S before Inspection??

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