The Purchase Agreement, Part I
April 5, 2017
The Purchase Agreement, Part III
April 5, 2017

The Purchase Agreement, Part II

Just completing the Purchase Agreement can begin to feel overwhelming but remember, your Realtor? is experienced in this process and can certainly help you through it!

5) Do you want to ask the seller to contribute to the closing costs? It is fairly common in this area for the buyer to ask the seller to pay an amount toward the cost of closing the loan. The term ?closing costs? often refers to items like: attorney fees, insurance premiums, survey costs, escrow establishment charges, etc. Basically these are items that are normally paid at the closing table. Just remember, this is another item of negotiation. The seller probably has a bottom line figure they need (or want) to walk away with and may indicate that they will contribute to closing costs only if the purchase price is a certain amount.

6) Buyers usually provide earnest money along with the Purchase Agreement that is intended to show the sincerity of the offer. The amount that is expected varies but unless otherwise indicated a good rule of thumb is 1% of the purchase price. At closing, the earnest money is credited to those items the buyer is expected to pay. If the closing does not occur, through no fault of the buyer, a refund should be requested.

7) The timing of the closing should be indicated on the Purchase Agreement but ultimately, if there is a mortgage, it may depend on when the loan can be finalized. The date on the agreement is very important and should be considered seriously. One seven-day unilateral extension can be requested but after that time, there is no guarantee that the contract will be extended.

8) At a minimum a termite letter should be prepared by a licensed pest control operator dated within 180 days of the Binding Agreement Date and that it be attached to the agreement. If the report is not attached, the seller must provide such report to the buyer within seven days of the Binding Agreement Date.

Note: The Binding Agreement Date is the date that all parties have signed the contract and been notified of same.