Five Dangerous Contract Clauses to Avoid in Property Agreements

In real estate transactions, standard contracts are often prepared by the seller\'s brokerage, which can result in clauses that favor the seller over the buyer.

Understanding and identifying these unbalanced terms is essential to protecting your interests and avoiding unnecessary costs.

Critical Clauses to Watch For:

1. Unreasonable Forfeiture of Earnest Money: Terminology that allows the seller to keep your deposit if financing is delayed, even when there is an active mortgage contingency.
2. As-Is Property Transfer (Kashitampo Sekinin 免除): Terminology that waives the seller\'s liability for structural or piping defects discovered after the close of escrow.
3. Unilateral Closing Delays: Clauses that allow developers to delay completion of new construction without paying compensation to the buyer.

Before signing any real estate contract, it is critical to have an experienced, independent legal advocate review the terms to ensure they are fair and protect your financial interests.