Condo Conversion Blues

I think that sometimes people have a very unfounded sense of confidence when purchasing through a condo conversion. I have sat and watched buyers sign contracts that they have not even read. Just because there are people in front of you in line signing quickly does not mean that you should too. Be careful.

One such example that demonstrates my point can be found in a recent contract I was dealing with. Effectively, once a buyer signs there is no financing contingency or remedy for not being able to get a loan. This means the buyer is making a cash offer with no way to back out regardless of whether they can get a loan or not. Just because the state contract allows for a financing contingency does not mean that a contract from a developer will do the same.

Make sure your agent has had proper time to evaluate the contract you are signing. Sign slowly and make sure that you understand every clause. And remember, just because the developer's lawyer drew the contract up does not mean it cannot be altered. Don't shy away from asking for more, or at least a fair contract.