What is the Home Purchase Contracts And How To Go About One?
When you have finally found the home that has won your heart, you can make arrangements to make the move and hire services from reliable movers like A-1 Auto Transport. However, there is a legal process that you have to go through so as to make the home yours. Home purchase contracts, also known as real estate contracts, are an agreement that is binding and is between two or more parties that have the legal capacity for the purchase or exchange of real estate property. The property is exchanged for consideration which is mostly in monetary terms or the promise to pay.
Contents of a real estate purchase contract
- The rights and obligations of each party and essential details related to the contract.
- The conditions and contingencies that must be met.
- The condition of the property and the inclusions and exclusions.
- The closing costs and clear indications of who should pay what.
- The signatures of the parties to the contract.
- The prospective date of closing the contract.
- The deposit amount payable.
- The terms of possession applicable.
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How to go about various conditions of the contract
- Closing costs: These are the costs incurred to make the home purchase final. They may include title insurance, escrow fees, recording fees, title search fees, and notary fees. It is good to have it clearly stated who should cover which cost. A real estate agent would advise you on the party that is liable for some costs in your area.
- Seller assist: This is a statement that you give, requesting that the seller should assist you in clearing the closing costs.
- Home inspection contingency: Including this clause in the contract enables you to walk out of a home purchase agreement in case there are major defects in the home that would be costly to repair.
- Fixtures and appliances: Make a written statement and do not rely on verbal agreements when you would like various fixtures and appliances to be included in the purchase of the house.
Factors that may influence the closing date
The closing date is the date specified in the home purchase contract by which you as the buyer need to complete the purchase transaction. The timeframe is usually 30 days, 45 days or 60 days. The following are some instances that may make the duration vary:
- The urgency of the seller’s need to find a new home.
- The amount of time a buyer has to relocate. Job placements that involve long distance moves may require that the purchase is completed as soon as possible.
- In case you are currently renting, the amount of time left for your lease to end is also another factor.
It is good to familiarize yourself with the terms of a home purchase contract so that you may make informed choices and you can know your rights and obligations as a purchaser. While your mover is preparing and handling the long distance move, take time to understand the home purchase contract and reach a reasonable agreement with the seller.