While they're not the Spanish Inquisition, contracts are documents that would make Torquemada proud -- thorough in detail, comprehensive in scope and relentless in their quest for specificity and accuracy.
Really, though, they're nothing more than prose that attempts to articulate specific actions and or results between parties -- in this case, home buyers and sellers. This one-size-fits-nobody garment covers everything that needs to be covered with the ability to be modified and altered as needed.
It's impossible to cover within the confines of any publication all of the variances that might arise, but it is possible to communicate the purpose and some general precautions for you to consider prior to putting pen to paper.
In the case of a Purchase Contract, a quick overview reveals a process that moves from the general to the specific. It begins with a property description -- the address, zip code, county and state. About as clear as bomb drop on a barren Afghani mountainside, or at least it should be.
The watercooler conversation in many a Realtor's office, however, has at one point included the story of a buyer who didn't realize that the property location was different from what was originally supplied in the seller's the literature.
In some cases, the county, township or school district, for example, are close to where you want to be but not exactly. Re-zoning and re-districting are occurring all the time, with cities, townships and municipalities morphing, causing borders to expand and contract frequently. For example, a seller might believe to the best of their knowledge that they've always been in a particular school district or it changed during their tenure and they were simply unaware.
Often the middle or end of a street serves as the dividing line between school districts, or the line might meander through various municipalities and create bewilderment for all, politicians included.
Even if you're single and children aren't involved, knowing the precise location of the property is essential. The quality of the school system can directly effect property taxes, which can in turn impact the value of a home not only in terms of its purchase price today but also in the years to come. The best advise here is know in detail what you're buying before you start buying.
Assuming facts of any kind cause big problems and cost big money.
Suffice to say, whatever the reason might be and regardless of the source, the emphasis and responsibility is on you the buyer-to-be to check the accuracy of the contract information -- especially if another party has provided it.
Accuracy is one of the mainstays of good contracts and a subject that will continually be revisited as the inquisition marches on.
STEVEN J. LOWENSTEIN, a native of Cincinnati, is a Realtor with Coletta & Associates Realtors. He's a graduate of the University of Cincinnati and holds a Master's degree from North Texas State University.
