Posted on December 15, 2020 in
Written by: David B. Honig
Unfortunately, many of their “form” contracts were developed before the current downturn – at a time when sellers had all the bargaining advantages – and the resulting agreements were so one-sided in favour of sellers that some Virginia courts found them unenforceable. While there are many steps you can take to protect yourself if existing buyers insist on returning their deposit, it would also be wise to take preventive measures now to ensure that your form contracts are fully compliant with virginia law to protect you in the future. The offer includes the purchase price and the additional conditions set by the buyer. The seller is given a deadline to respond to the offer before it expires. During this period, the seller can change the conditions by making a counter-offer to the buyer. If the two parties agree on the terms of purchase, they can sign the document in order to create a legally binding obligation to transfer ownership of the property. Virginia has now experienced a declining residential real estate market for several years, marked by periods of low sales, high inventories and falling prices. Note that prices and inventory have stabilized in recent times, but activity has certainly slowed again after the expiration of federal tax credits for home buyers. Given the current situation in the residential real estate market, many buyers feel remorse and try to terminate their sales contracts and receive a full refund of their deposit from the seller. As mentioned at the beginning, the terms of your offer may vary depending on your situation, but the following provisions and contingencies are included in most land purchase offers: Offer Summary.
A full set of offers can include 20-30 pages of paperwork. Therefore, I would like to include a summary of the terms of the offer in an email to the seller`s agent when I send the offer. This should include the purchase price, the means of financing (for example. B cash or bank financing), proposed settlement date, contingencies and contingency timing. In certain circumstances (for example. B if you violate a contractual condition), the down payment may be withheld by the seller and cannot be refunded. The conditions under which this may occur should be clearly stated in the offer to purchase. As long as you are attentive to these conditions, there is no reason why you should be able to cause your deposit to be lost in a negative way. Disclosure package from the owners` association. If you purchase land in a planned municipality, the land could be owned by a landowner association.
If this is the case, the Virginia Property Owners` Association Act requires the seller to provide the buyer with a doorout (received directly from the association). Once you have received the package, you have 3 days to check the package and decide if you want to continue the purchase or terminate the contract.