Look before you sign
By Greg Hanner Sponsored by: Eastern Connecticut Association of REALTORS®
You've managed to get through the last few months of unprecedented health and economic crisis, ready to move forward with your dream of homeownership. You've found the home that meets your needs and fulfills those dreams. And you're ready to make an offer. So, what's next? At this point, you'll sit down with the real estate professional who showed you the property and prepare a sales contract. A sales contract, or Purchase and Sale Agreement, is the formal presentation of your bid to the seller. It contains all the provisions of the sale, from the price to whether the bedroom drapes are included. Make sure the contract is fully complete and leaves nothing to question.
In the excitement of the negotiating process, contract details can be overlooked.
This can waste time and delay negotiations. It's wise to look over a blank contract before viewing properties, so you can familiarize yourself with the important points.
Your real estate professional will probably begin with a standard contract that contains more provisions than most buyers and sellers need, and then tailor it to address the specific transaction. Parts of the contract that are not applicable will be deleted, and other points may be added. Every contract is different, but some of the major provisions are: the purchase price, amount of initial earnest deposit and terms for payment of the remainder, amount of down payment, specifications for prorating taxes, and the date of closing and occupancy date. All aspects of the sale and financing terms definitely should be included.
Once you are satisfied with the Purchase and Sale Agreement, the agent will deliver it to the listing agent or seller, who then has the right to negotiate each point. Nothing is final until an agreement on every point is reached between the buyer and seller and is signed by both parties.
Upon agreement and signature of the contract and receipt of the buyer's earnest money, both parties are legally obligated to the agreement's terms. Commonly, a clause will specify that the contract is pending on legal review and a professional property inspection for the buyer. Typically, the buyer has an agreed upon number of working days in which to accomplish these matters. However, like the other provisions, these are negotiable.
You may decide to hire an attorney to review the contract and handle the closing. No matter how straightforward and simple your sales contract may seem, unanticipated problems can cause heartache at the last minute. A lawyer may be able to foresee and avert such complications.
Contact the Eastern Connecticut Association of REALTORS® or visit easternctrealtors. com to speak with a Realtor®for information and advice about buying a home in 2020.