When buying real estate, the contract becomes incredibly important. You will use the contract to draft agreements about what the seller’s responsibilities are. For example, you may have the seller agree to clean up the garage prior to the sale.
However, AJC explains that once you close on the house, the contract is no longer enforceable. If the seller did not complete everything under the contract, then it is your loss. That is where a survival clause can help.
Survival clause defined
A survival clause is one that outlasts the end of the contract. If you put something under this type of clause, you can still hold the seller accountable after you close on the property. It gives you a bit of power to ensure the seller upholds all of the agreements he or she made in the sales contract without having to delay the closing.
Survival clause uses
There are many situations in which you may want to include a survival clause. Perhaps the best situation is if the seller needs to clean up something or make repairs that will take some time to complete, you can put this in this type of clause so that you can continue with the deal without having to wait for the seller to accomplish the task.
A survival clause enables you to hold the seller responsible. You can ensure you will have everything you agreed upon in the contract without having to deal with delays or waiting around for a seller who does not seem to move forward on certain tasks. It also gives you a legal right to hold the seller accountable for agreements made under the contract when the contract is no longer in effect.