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Get a good contract when you're buying a home

In real estate, one thing is sure: You have to make sure that your contract is legal. When a contract is legally binding, it protects you. You retain many rights and can stop others from taking advantage of you or your finances.

For example, if you're interested in buying a house, you might enter into a contract that states that you will buy the house upon a positive inspection. If there are major problems, you would retain the ability to walk away from the purchase or to ask the seller to fix what's wrong.

If you're not careful, you might sign a different contract that accepts that you will buy the home regardless of the damage that comes back on the inspection. That's usually known as buying a home AS-IS, which is generally frowned upon by buyers. Getting locked into a purchase hurts you because finding out what's wrong with the home will only help you know what you need to fix; you'd still need to buy it.

Signing the wrong contract can lead to trouble for first-time homebuyers, so it's a smart choice to reach out to your attorney for help. Your attorney will review the contract and make sure it's fair and legally binding. They'll also help you understand what's included in the contract, so you sign something you understand well. You should never sign a contract you don't understand since that could lead to a conflict later on.

Our site has more on getting a great contract when you buy a home and moving forward with a purchase.

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