Is my purchase agreement contingency okay?
Hey all,
I have three properties I am about to sign purchase agreements for, and it is an investor to investor sale.
Everything about the deal gives me a warm and fuzzy, less one condition. But it may very well be the standard. This is my first set of investment properties so I am not sure:
The PA has a contingency of AS IS condition for the houses. Below that at my request the seller has included the line "Inspection for informational purposes only" and below that "Only serious structural issues (over 5,000 dollars) may be grounds for terminating or renegotiating this contract"
I met the seller, flew to the state the property is in and saw the properties my self, nothing seemed wrecked about them. He has done some cosmetic and mechanical rehab on the properties already, and the seller has an outstanding reputation in the BP community and investor community.
Should I be worried about this? Should I have the 5000 dollar issues clause lowered to say 2000 or 3000 to protect myself? Or is this PA format standard for investor to investor deals?
Thanks guys!
Tyler