When you are buying a home, it is important to have all of the necessary paperwork in order. This includes a home purchase contract, which is a legally binding agreement between the buyer and seller outlining the terms of the sale.
Here are some important things to look for in a sample home purchase contract:
1. Property Description: The contract should include a detailed description of the property, including the address, lot size, and any existing structures.
2. Purchase Price: The contract should clearly state the purchase price of the property, as well as any contingencies or conditions that may affect the price.
3. Closing Date: The contract should specify the date when the sale will close, as well as any conditions that must be met before the sale can be finalized.
4. Earnest Money: The buyer typically puts down earnest money, which is a deposit that shows their intent to purchase the property. The contract should outline the amount of the earnest money deposit and when it is due.
5. Contingencies: A contingency is a condition that must be met before the sale can be finalized. The contract should outline any contingencies, such as a home inspection, financing, or appraisal.
6. Closing Costs: Both the buyer and seller will have closing costs associated with the sale. The contract should specify who is responsible for paying these costs and how they will be calculated.
7. Home Warranty: The contract may include a home warranty, which is a service contract that covers repairs or replacements for certain items in the home. The contract should specify the type and duration of the home warranty.
While a sample home purchase contract can give you a general idea of what to expect, it is important to have an experienced real estate attorney review the contract before you sign it. Doing so can help ensure that all of the necessary elements are included and that the contract is fair to both parties.
In conclusion, a well-written home purchase contract is essential for a successful real estate transaction. By including all of the necessary elements and having it reviewed by an attorney, you can help ensure a smooth and stress-free home buying experience.