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Home Purchase Agreement Terms Explained
Here are some important home purchase agreement points to consider before you sign your Terms of Agreement to purchase your new house. The real estate agent will probably have a pre-printed home purchase agreement for you to sign but you CAN make any changes or additions to this form. All of the purchase agreement changes must be approved by the seller. On this house purchase agreement, you should include things like move in date and any appliances or personal property that will be sold with the house.
This is a definition list of what you should expect to see on the home purchase agreement form:
Sales Price. The price the buyer is willing to pay the seller
Title. Refers to the legal ownership of the home, should be free of any liens and be
clear with no encumbrances. You may negotiate who will pay for the title search.
Mortgage Clause. This should state that your deposit will be refunded if the sale is canceled because the buyer cannot get a mortgage.
Pests. The lender will require a certificate from an inspector stating that the home is free from termites, pests and pest damage. You may want to reserve the right to cancel the sale agreement if pests or pest damage is found.
Home Inspection. A home inspection by a qualified inspector will determine the condition of the plumbing, heating, cooling and electric systems. Most buyers pay the inspection fees because the inspector is working for them. You may want to reserve the right to cancel the sales agreement if you are not satisfied with the inspection results (depending upon the type of loan you are getting, the bank may stipulate this too).
Lead Based Paint Hazards. If you buy a home built before 1978 you have the right to at least 10 days to complete an inspection and you must negotiate with the seller, the right to cancel the sales agreement based on the inspectors findings.
Sharing of Expenses. Negotiate how expenses will be split for taxes, water and sewer charges, along with utility bills on the date of settlement.
Settlement Agent/ Escrow Agent. You may have the option of choosing your settlement agent or escrow company.
Settlement Costs . Negotiate the settlement costs you will pay and which costs will be paid by the seller.
The information contained on this page is intended to enlighten newlyweds by offering a basic understanding of home buying principles. Forever & Always Co., Inc. assumes no liability for omissions, errors or the outcome of any home buying endeavor (or experience) on the part of the reader. The reader should always exercise reasonable discretion, follow their own state and local guidelines and is urged to consult a licensed professional for more complete home buying guidance. The information on this page is not meant to be used in place of professional advice. Forever & Always Co., Inc. is not affiliated with the above website referrals.
©2005 ForeverAndAlways.com |
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