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This Is Why A Property Purchase Agreement Is So Important

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If you are buying a home, one of the crucial documents you need to scrutinize thoroughly is the property purchase agreement. This is necessary because the document contains important issues such as these.

Closing Dates

Since buying a house is a process, you need to know when the whole process will conclude, and you will be able to take possession of the house. The date on which everything associated with the purchase is concluded is known as the closing date, and it is indicated on the purchase agreement. Without it, you may not even be sure when you will have the authority to take possession of your new house.

Closing Costs

Closing costs are expenses, apart from the cost of the property, associated with the purchase of the property. They include expenses like appraisal costs, title search costs, property survey fees, and prepaid costs, among others. You need to know how much these costs are and who will be paying them. In some places, the buyer and seller share the closing costs while you may be expected to bear them in other places; in most cases, however, you will negotiate with the seller on who pays which costs. The purchase agreement will contain this clarification.  

Contingencies

The contingencies are the conditions that must be met before the sale can happen. Both the seller and buyer have their own contingencies, and each party is free to pull out of the sale if the conditions aren't met. It's important to include the contingencies in the purchase agreement, so you know which conditions you have to meet for the seller to sell you the house. Including the contingencies in the purchase agreement also ensures that the seller can't sneak a new condition just before the closing.

Included or Excluded Items

If you are buying an existing house, then it's possible that the seller has includes some of the items (other than the actual house) in the sale but will also be taking some of the items currently in the house with them. You need to know which of the items currently in the home you will acquire and which of them the seller will be taking. You don't want to assume that you are getting the storage shed only for the seller to cart it away on the closing date. The purchase agreement will be explicit on which items are included and which ones are excluded.

Contact your real estate agent for more information and assistance.


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