Elements of a Purchase Agreement

Time Limits are important in a contract. If we as the seller, or you as the buyer, do not fulfill obligations within the stated time frames, the contract is no longer binding. It's important to follow-up with inspections, attorney approvals, contingency dates, and all other details.

Loan Conditions - Is your offer contingent upon obtaining a mortgage/loan? It's important for the parties involved to check on the progress of the loan and which conditions are being met.

Inspections - We highly recommend you get a home inspection. Required inspections should be stipulated in the contract, and the party responsible for payment spelled out.

Personal Property - Include items such as appliances in the purchase contract so that there are no misunderstandings as to what will remain with the property.

Closing Date - The purchase contract will include a closing date for the transaction. We are open to a closing date that is anywhere from 15-30 days as long as there is enough time to meet any conditions. Make sure you check with your mortgage company, and pre-schedule your home inspector and/or appraiser for a shorter closing date.

Earnest Money, although not required by law, is crucial because it conveys your intention to follow through with the purchase of our property. Only offers with a reasonable deposit will be accepted, because this is our only repercussion, either due to an oversight, or if an offer isn't genuinly sincere.

Prorating means that items such as property tax, insurance, and mortgage interest are prorated on the closing date.

Escrow fees vary depending on the location. For more information, please contact ______ or an escrow company of your choice. _______ is familiar with this property. The contract should define who pays for escrow fees.

Title Search - There are no outstanding liens or emcumbrances on our property, and it's our responsibility to deliver a clear title to you (the Buyer) at closing. The escrow company will do a search on the title of the home and review it to make sure everything is clear.

Possession usually takes place on the day of closing. The contract will define when the property is to be turned over to the buyer.

Source: http://www.realestatepowertools.com/