Buyers March 28, 2017

What You Need to Know About Purchase Contracts

When buying a new home, it is always important that you take care of all the paper work in time to prevent future disagreements. Many people get carried away by the excitement of owning a new home and they forget the most important details or requirements. Apart from the obvious things like the purchase price and your address, there are other items that need to be included in a purchase contract.


What you should know about purchase contracts

Purchase contracts are written agreements to help you and the seller be in pact over certain issues before buying a house. Quite often buyers forget to put down the most important clauses in their offers. Here is a glimpse of what you should always include in your contract.


  • Home Inspection

Unless you plan on purchasing a damaged house, it is always advisable that you include a home inspection contingency in your contract. In that way, if you find the house is damaged or has some flaws, then you can walk away from that deal. But if you don’t put that home inspection contingency, you may be forced to buy the house since you already signed the purchase agreements.


  • Finance Terms

It is very costly to buy a home in just one installment. Most people prefer to buy homes by obtaining mortgages. Therefore, make sure you include in the contract that you can only pay the installments at a specified interest rate. For example, if you can only afford to make monthly payments with an interest rate of 5%, make sure you put that down in your offer. If not, you will have to give up your earnest money once you back out of the deal.


  • Closing Costs

There are costs that are involved when buying a home. Some of them include recording fees, title search fees, transfer tax, and notary fees among others. It is important that you agree with the seller beforehand on who is paying for the closing costs and make sure you include it in the purchase contract.


  • Closing dates

You must include the dates of when you expect to have paid all the installments. This way, both you and the seller can be in agreement to avoid any pressure on either side.


In conclusion, make sure you ask your solicitor to explain to you all the terms you don’t understand and make sure you know all the items included in exchange contracts before signing any of them.


Amherst Madison Legacy Legal Estate is a real estate company that is based in Boise, Idaho area. Our professionals are people who stay in touch with market trends and advise you on the necessary steps of buying a house. For a well-informed decision on the house to buy as well as the terms of purchase, please contact our realtors.