PROPERTY TAX
This Property tax paragraph shows based on 100% principal residence exemption, that may not be the case and could cost your client tax prorations. The other is No Prorations of taxes, that would also cost your client their refund of tax prorations in a advance payable scenario, and opposite in a arrears payable scenario. No prorations of taxes can be a good deal making strategy. It could be a way to get more ‘seller concessions’ than what a lender might allow.
Here is another one to watch out for, arrears could be selected even though its in advance or vice versa and either the buyer or seller would lose out depending on the municipality taxing in advance/arrears. The goal is to be fair with all parties, we don’t want to have any parties buyer or seller lose out on what is fair based on market standards. I always tell my sellers that we want to make this a good transaction for the buyers.
HOME WARRANTIES
Watch out for Home Warranties, they are not that much but you should be aware of it.
AFTER CLOSING REPAIRS
Another thing to watch out for, if possession is included this shows that a seller may be responsible for expensive repairs:
WELL AND SEPTIC INSPECTIONS
Be aware of well and septic responsibilities for your clients:
