Evaluating the outdoor living spaces of a property may lead to a Kansas resident purchasing or not purchasing a particular property. A resident considering pool or patio enhancement should also understand the contracting process in Texas to protect the significant investment that could be involved.
The concept behind an earnest money agreement is relatively simple – when a prospective buyer and seller of real property agree to a basic term sheet, they complete the transaction by executing a formal earnest money contract. For Kansas residents purchasing real property in Texas, understanding the function, scope and basic rules of earnest money contracts is critical to successfully negotiating a deal.
Many Kansas residents, particularly those purchasing properties outside of state, may be unaware of how to properly evaluate the scope of an earnest money contract. Understanding some of the finer legislative details (like the fact that the earnest money contract must be in writing, Texas Property Code §5.008(a)) as well as the proper contract form (Texas Realtors Form 1504) will help prospective buyers make informed purchase decisions. Additionally, understanding some of the lesser-known requirements of the form will avoid potential pitfalls, like the deadline for returning any alternative earnest money or negotiated contracting fees as specified in the contract. Texas Property Code §5.008(c). Entering into a legally binding contract in Texas requires diligence and awareness of relevant laws.
For those considering purchasing real estate, having knowledge of the functionality of this type of agreement allows buyers to feel more confident in their purchase. Whether the property is a rustic log cabin, modern glass home or homestead on an expansive plot, understanding how to evaluate a prospective buyer’s earnest money contract may facilitate the transaction process.
An earnest money contract is standard practice in Texas and is generally required to complete a transfer of property. For Kansas residents who find themselves purchasing property in Texas, understanding the earnest money contract is paramount to make informed decisions. Though the contract is standard, there are slight nuances varying from Kansas law. For example, Kansas courts have held that any oral agreements regarding ranch management fees are not enforceable if not included in a written contract. See Kansas Agricultural Center, LLC v. Flying Diamond Ranch, 315 P.3d 855 (2014). In other words, it is important to understand the requirements of a jurisdiction before entering into any contract.
Homebuyers looking to purchase property and enhance outdoor spaces like pools or patios should understand the basic terms of an earnest money contract in order to ensure proper financing of the purchase. By knowing what to expect from the development and contracting process, buyers can better budget for the cost involved after the home purchase. For example, residents who purchase unimproved real property may be subject to higher costs (and a longer commitment) to finance development than residents that purchase properties with improved facilities like pools. Understanding the pool or patio enhancements, whether they be in-ground facilities that need to be maintained and evaluated or ground-level facilities that require minimal maintenance, may better help homebuyers establish a financing plan in conjunction with their home purchase.
Local real estate agents suggest that a customer should meet with pool or patio specialists before entering into a real estate purchase agreement. Employees at companies like Sunflower Pool and Patio can explain pricing plans and potential land-use implications to ensure the customer understands the full scope of the financial implications of home improvements. While purchase agreements may have designated fees for installations of this nature, these fees may not include associated costs to enter into pools or patios agreements. A prospective buyer interested in installing a pool should ensure he or she can afford enhanced outdoor living facilities before purchasing property.
A prospective buyer of real property interested in installing a pool or patio should investigate the pool or patio industry before entering into a home purchase agreement. By meeting with representatives like those at Sunflower Pool and Patio to evaluate options considering during the purchase process, the buyer can ensure he or she will be able to afford the home improvement and can take the necessary steps to include the enhancements into a purchase agreement.
Checking a pool or patio company’s reviews will allow prospective buyers the opportunity to ensure they are hiring reputable professionals. Companies with long-standing customer reviews show their investment in customer service, as well as their dedication to producing satisfactory results for customers. Evaluating the reviews of pool or patio companies before entering into a purchase agreement and purchasing arrangements can help save Kansas residents the trouble of contract disputes after a home purchase. Understanding a pool or patio company’s reputation will assist in making informed decisions, as well as can protect the buyer from contracting with a company that will not produce satisfactory results.
If a homebuyer is purchasing property without pools or other outdoor living enhancements, the buyer should check the reputation of a pool or patio construction company before hiring. The cost associated with financing the purchase of real property is often substantial, so avoiding post-purchase headaches with inconsistently applied pool or patio financing is important. Having a qualified resource before entering into purchase agreements will help ensure the buyer is protected from significant losses. Additionally, the buyer will be more likely to be able to correctly manage finances after making a massive purchase. Unforeseen losses should be avoided at all costs.
Notwithstanding best practice research into the pool or patio industry, mistakes do happen on either side of the pool or patio installation transaction. In order to protect against potential miscommunications, homebuyers purchasing without pre-existing properties with outdoor amenities should ensure they understand all of the rights and responsibilities of both parties before entering into a purchase agreement. Obtaining the desired property will likely be enough of a legislative headache when dealing with home mortgages, property taxes and other legal aspects of homeownership. It is best to avoid entering into an arrangement with a pool or patio company with misaligned expectations.
Failure to understand the obligations of a third-party purchaser can leave a buyer at the mercy of arbitrary interested parties. Unforeseen expenses will become apparent when the expected costs exceed the anticipated costs under the real estate purchase transaction. Having knowledge of the potential pitfalls of an earnest money contract will ensure those entering into property purchases are fully aware of the rights they possess, along with the responsibility that corresponds with those rights. For example, understanding that the earnest money payable to escrow agents may be returned in parts or in full under specified circumstances will allow a buyer to fully understand the opportunity costs of entering into a purchase agreement. See Texas Property Code §5.008(c).
Understanding some of the finer legislative details entering into real property purchases will help ensure Kansas residents are satisfied with their purchases. Evaluating outdoor spaces that lack enhancements is critical to ensuring the property can be modified to fit the purchasers’ needs. Without a full understanding of potential costs, however, the property itself may become the buyer’s biggest problem.
The scope and legislative intent behind an earnest money contract is fairly consistent across jurisdictions. Though primarily aimed at the protection of an interested party, the fact that these contracts exist may rarely be in question. The extent to which the earnest money contract evaluates the underlying deal, however, is still largely dependent on the individual who enters into the contract. Lack of information about the intended use of the property, such as whether the buyer intends to install a swimming pool or other outdoor amenities, can be detrimental to the buyer. Precautions should be taken to ensure customers are not left without recourse should an agreement go awry.