2 must-have contingencies in a home purchase offer (www.horizonpropertiesguam.com)

2 must-have contingencies in a home purchase offer Stand your ground even if agent advises against them By Benny Kass

DEAR BENNY: I am in the process of buying an older single-family home and found one I like. I wanted to have my contract contingent on obtaining a favorable home inspection, but my real estate agent has been discouraging me. She claims that I may lose the house if I insist on the inspection.  What do you think? –Terrie

DEAR TERRIE: You are about to engage in what may be the biggest purchase of your life. You kick the tires when you buy a car. You should get an inspection, and if the seller does not allow this, walk away as fast as you can.

Inspections help both buyers and sellers. The buyer gets an independent assessment of the condition of the house, from inside and outside, and top to bottom. There is a hidden benefit to an inspection, namely that if you buy the house, you will know where things are such as turning off the water in case of a leak.

But the seller benefits also. I have represented many sellers whose buyer (after taking title) threatened to (and actually did) sue the seller, claiming multiple problems in the house. My defense, which generally works, is, "Hey, you had an inspector and had an opportunity to walk away if you found problems."  So, submit your contract with the inspection contingency. If the seller rejects it, he may be trying to hide known defects.

Also, many states require sellers to disclose all known problems in a house to potential buyers. If your state has this requirement, show the disclosure statement to your inspector.

The bottom line: There are two important contingencies that must be included in every real estate offer being made to sellers.

·        First, a contingency on financing (assuming you need to obtain a mortgage and are not paying all cash).

·        Second, obtaining a home inspection report from an independent inspector selected by you, to your satisfaction.

Don't be pressured to sign a contract without these two provisions. In law school, we are taught that real estate is unique. In my many years of practicing law, however, I have learned that it "ain't necessarily so."

 Horizon Properties Inc. is Guam’s leading real estate services provider and property management company. We work diligently to fulfill the requirements of buyers and renters, while working towards a smooth, hassle-free transaction for sellers. Our innovative and “customer first” approach towards property management results in outstanding property care and profitability.