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You've found your Home and now You're ready to make an offer

Fri, May 27th, 2011
Posted in Ask the Expert


Purchase Contract is used for filling in the details specific to your purchase terms. This legally binding contract is used for: 1. Setting forth the terms of the sale; 2. Establish the rights and obligations of the parties involved; 3. Specify what actions will be taken in order to close the sale; and, 4. Establish time frames for those steps to be completed.

 While most buyers are usually fully aware of the terms regarding price, closing date, and financial arrangements, there is a tendency to overlook much of the rest of the contract. However, since all the contract terms will be binding, it is important to understand what you are agreeing to before signing. Not doing so can be a costly mistake, especially if there are problems or difficulties in the transaction.

When an offer becomes a contract - a purchase contract is created when there is a "meeting of the minds" on all terms - when you and the seller have come to an agreement and signed the contract along with any counter-offers and addenda. Real estate contracts MUST be in writing; verbal contracts to purchase real estate cannot be enforced.

Do your homework in advance - It is highly recommenced that you read and review the forms with your buyer's representative/agent before you write and sign the purchase officer. That way, once you are ready to present a bona-fide offer, your focus will be on the primary issues of price, terms, and closing date.

 Reviewing and understanding the purchase contract form ahead of time can also help you strengthen your negotiating position, protect yourself from insuring unnecessary costs or problems, and gain a better understanding of what you will need to do to conclude the sale.


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