3 Crucial Elements of a Real Estate Purchase and Sale Agreement

Congratulations, buying or selling your home is a huge step, and that’s why you must know about the purchase and sale agreement. This is the agreement between you and the buyer or seller that makes the deal legit.

In this article, we will go in-depth about 3 essential aspects of the agreement that you need to pay attention to. You need to know these things in advance because once you sign the contract, it’s challenging to go back.

Continue reading to find out which pieces of the real estate purchase agreement you need to focus on.

1 Property Condition and Description

This part of the contract is essential because it not only describes the property but also details what will come with the company. When reading this, you need to make a note of the parts of the house that may need to be repaired or fixed.

You’ll also need to know based on the property details whether there will be any issues with the house in the future, such as foundation issues that you’re going to be okay with taking on. You can also have a home inspector check parts of the home that you may be concerned about during your due diligence period.

2 Closing Costs

This part of the contract will detail the closing costs that are due and which party will pay these costs. Depending on the buyer and the seller’s agreement, the buyer may pay the majority of the closing cost if they wanted to secure the home, leaving the seller with nothing to pay.

Or the buyer and the seller may agree to both pay half of the closing costs. Whatever the agreement is, you need to know what portion of the closing costs you’re going to be held responsible for before signing the contract.

3 When the Keys Will Be Handed Over

The timing of the keys being given to the new owner of the house isn’t always given on the same date as the closing. Before you sign your contract, you need to read through the paperwork and find the area where it says, “Keys Given: at closing.”

If you’re not able to locate the area where it states whether your keys will be given during the closing, you need to contact your real estate agent and ask them when the seller plans to hand over the keys.

In this same section, you’ll need to take note of the date of closing. This is when you’ll sit down with the seller, each agent, and lawyers if they’re present to sign all of the paperwork. It’s the final stage in your journey to buying or selling a home.

If you want to know about the other aspects of a purchase agreement, you can learn some more about it right here.

Purchase and Sale Agreements Made Easy

When you enter into a purchase and sale agreement before signing anything, read the contract thoroughly because once you sign it, you’re stuck in the deal. You’ll want to ensure that everything in the contract you’re okay with before agreeing to it.

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