Real estate purchase agreements may not sound as exciting as words like “deed” or “final mortgage payment,” but when it comes to buying a home, there are few pieces of paperwork quite as important as the real estate purchase contract.
Here’s how you can sign on the dotted line without losing your mind.
A real estate purchase contract is a legally binding document that details the sale of the property. Details range from the basics (e.g., how much the property costs) to the specifics ( e.g., what furniture or appliances stay in the house).
Before you even go near the real estate purchase agreement, do a walk-through of the property with a professional land surveyor, engineer, or experienced landowner. Call in an inspector to search for anything that might end up costing you extra money: broken gutters or gates, inadequate electrical circuits, outdated plumbing pipes, and more. Get it all down in writing and attach all building and land inspection forms to the contract.
Once all the paperwork is gathered and reviewed, a real estate purchase agreement will be drawn up. The following are common items that appear in traditional contracts:
When you sign this contract—that’s pretty much it. If you come back to the seller and ask for anything else not in the purchase agreement, she or he doesn’t have to do it—and probably won’t. The contract states everything you’re getting and not getting in your new home, so get a real estate lawyer to go over all the details. Ask the seller for clarification on anything you don’t understand, and sign only when you’re certain you understand the agreement.
Store the real estate purchase contract in a secure area such as a safe-deposit box. Also store the deed and any other documents registered in the local registry office.
Updated from an earlier version by Cina Coren
Craig Donofrio covers home finance and all things real estate for realtor.com. His work has been featured in outlets such as The Street, MSN, and Yahoo News.
