Financing Contingency Pitfalls [Editor’s Note: The views expressed here are solely those of Ross Kaplan, and do not represent Edina Realty, Berkshire Hathaway, or any other entity referenced. If you need legal advice, please consult an attorney.] One of the surprises lurking in the standard Minnesota Financing Addendum is the weaker of the two clauses addressing...Read More
Financing Contingency Pitfalls One of the surprises lurking in the standard Minnesota Financing Addendum is the weaker of the two clauses addressing the Buyer’s financing. In layman’s terms, it says that if the closing date arrives and the Buyer’s financing falls through: a) there’s no deal; and b) the Buyer gets their earnest money back. For...Read More
Financing Contingency Pitfalls One of the surprises lurking in the standard Minnesota Financing Addendum is the weaker of the two clauses addressing the Buyer’s financing. In layman’s terms, it says that if the closing date arrives and the Buyer’s financing falls through: a) there’s no deal; and b) the Buyer gets their earnest money back. For...Read More
Weighing Defensive Clauses, Offensive Clauses — & No Clauses [Editor’s Note: Nothing in this post or on this blog should be construed as offering legal counsel. If you require legal advice, please consult an attorney.] “Home must appraise at or above sale price. If appraisal is below that amount, Buyer shall have the right to renegotiate this...Read More
Law of Diminishing Returns If you don’t like technical, legalistic real estate posts — stop reading here. Earnest money (called “unrest money” by at least one recent Buyer) plays an overlooked but critical role in every real estate deal. Typically 2% to 5% of the purchase price, given by the Buyer to the Seller as...Read More
