| A real estate purchase agreement is not a rough | | | | agreement clearly states who will pay for what. Are |
| guide to a deal. It is a contract specifying exactly | | | | you splitting the cost of the fee paid to the closing |
| what legal obligations each side has. In other words, | | | | company? Who is paying each of the other closing |
| be sure it says what you want it to say, and has | | | | costs. If it doesn't state in the purchase agreement |
| everything you need in it. | | | | that the seller is paying, expect that you are. |
| Normally, if you are buying a property that is listed | | | | Financing Contingency - Unless you are paying cash, |
| with a real estate broker, they will have a purchase | | | | you will probably have to get a loan. A Pre-approval |
| agreement ready to have the blanks filled in. If you | | | | from the bank doesn't guarantee much, so be sure |
| have a buyer's agent that you work with, he or she | | | | that you make the agreement contingent on getting |
| will have the necessary forms. There are the routine | | | | that loan, and specify the terms. For example, it |
| parts which are necessary, but not easily forgotten | | | | might read, "This offer is contingent on buyer |
| or done wrong. These include the following. | | | | obtaining a mortgage loan within seven days, at 7.5% |
| The Date - Names of Buyer(s) and Seller(s) - | | | | annual interest or less." |
| Address Of Property - Legal Description Of Property | | | | Inspection Contingency - You may not need an |
| - Purchase Price And Terms - List Of Anything | | | | inspection if you are buying land, but with residential |
| Included With Property - Date The Deal Should Close | | | | real estate an inspection is a good idea. Generally, the |
| By - Closing Process - Disclosure Statement - | | | | clause for this will allow you about a week or ten |
| Signature With Date For Buyer And Seller - | | | | days to get it done. It might read something like this: |
| Addresses and Phone Numbers Of Buyer And Seller. | | | | "This offer is contingent on an inspection of the |
| These may be routine items, but be sure that you | | | | property at buyer's expense, and buyer's approval of |
| look all of this over carefully. If the disclosure | | | | the results of that inspection within seven days." |
| statement clearly states that there is a foundation | | | | Other Terms, Conditions or Contingencies - There are |
| problem, for example, you can't later get out of the | | | | sometimes other issues, and you have to address |
| deal when those cracks in the basement make you | | | | them in the real estate purchase agreement. For |
| nervous. With the following items, be especially | | | | example, if the back yard is full of junk cars, you |
| careful. | | | | better add a clause like, "All cars and junk to be |
| Real Estate Purchase Agreement - The Crucial Items | | | | removed at seller's expense before closing." If you |
| Good Faith Deposit or Earnest Money - Real estate | | | | are shopping alone but your wife needs to approve |
| agents will try to convince you that your deposit | | | | the home, you could also add a clause like, "Offer is |
| should be as much as possible. There is no "normal" | | | | subject to a approval by spouse within two days." |
| amount, and while it's true that a seller might take an | | | | Then your wife can look at the house later and say |
| offer more seriously with a bigger deposit, this is up | | | | yes or no to the deal. As you can imagine, sellers |
| to you. Real estate is regularly bought with $500 | | | | may not like that one. |
| deposits. An alternative is to include a deposit of | | | | If you are not working with an agent, you can buy |
| $200, and the line, "to be increased to $2,000 when | | | | an agreement (sometimes called an "offer to |
| all contingencies are satisfied." That way if the | | | | purchase" or "buy-sell agreement") online or in some |
| inspection shows nasty surprises your money isn't | | | | office supply stores. Having a lawyer review all the |
| tied up while the seller argues that there isn't a | | | | paperwork is best. Remember that a real estate |
| problem. | | | | purchase agreement is a binding contract the |
| Designation Of Who Pays What - Make sure the | | | | moment you and the other party sign it. |