We can provide you with the most straightforward approach to understand your financial position and needs. It makes a difference what you buy. It's even more crucial to consider where you buy and how you handle the financial side of things. The first and most important consideration in real estate is location. Take into account the developer, the surrounding area, and the distance to neighborhood facilities like shops, schools, and parks. These elements will make your life easier, but they will also substantially impact your home's future sale and rental values.
A memorandum of understanding (MOU) must be a detailed document that specifies the buyer's and seller's responsibilities. The charge to be paid to the real estate broker, government agencies, developer, and lender must all be indicated in the contract openly and unambiguously. A reasonable time frame for the transaction's completion should be included in the MOU, especially if the seller has a mortgage and the buyer is also financing the acquisition. If the valuation amount falls short of the agreed-upon sale price or if mortgage approvals are delayed for any reason, the buyer must be safeguarded by the MOU. The MOU must shield the buyer from any past legal issues or claims brought by the competent authorities or the developer, which could cause the transaction to be placed on hold. Particularly in the case of rented homes. In particular, MOUs for rented buildings should highlight explicit and transparent activities regarding the possession and future tenancy terms.
The bank's appointed valuators require an impartial appraisal of the property. The lender determines the loan amount using the evaluator's valuation amount. Sometimes, the valuation price is lower than the sale price, meaning lesser financing and a more significant down payment. A risk mitigation clause should be inserted in the MOU to avoid a situation like this, which might also safeguard the buyer from losing their initial deposit if they fall short of the planned funding amount. The market value assessed by the evaluators does not include transfer, brokerage costs, or the disposal of goods and furnishings.
