Connect with us

Finance

7 Things You Need To Know About Home Purchase Contracts

7 Things You Need To Know About Home Purchase Contracts

A purchase contract can seem daunting, to say the least. However, it’s important you know as much as possible so that you know what to expect. The last thing you want is for a deal to fall through because you didn’t understand the contract.

7 Things You Need To Know About Home Purchase Contracts

Contingencies Protect the Buyer

Contingencies are usually based on finances. For example, the buyer may request that the offer be based on obtaining financing. Another example is the contingency of the buyer being able to sell their current home. Regardless, contingencies are put in place to protect the buyer from getting stuck without the funds to pay for the purchase.

Buyers Have So Many Days to Get Things in Order

The contract will also state how many days the buyer has to be approved for financing and to get a home inspection completed. It’s important to pay close attention to these dates or you could lose the house.

Closing Costs Can Be Paid by the Seller

Closing costs vary from state to state. When paying closing costs, the seller usually pays 1 to 3-percent. While this may not seem like a big amount, it’s money that you don’t have to pay and can also help buyers and sellers come to an agreement when negotiating the price.

It Can Be Requested That the Seller Fix or Provide Funds to Have Repairs Made

Another important section of the purchase contract is that which lists repairs that need to be made on the property. These repairs may have been noticed by the buyer, such as damaged siding, or may be something that appeared in the home inspection, such as a bad furnace. Either way, these repairs can be addressed in the contract and the buyer can ask for money for the repairs or that the seller make the repairs before closing.

Sellers Must Vacate the Property within 30 Days of Closing

The closing date can be difficult to negotiate, especially if the seller is still living in the home. In some cases, the buyer and seller agree to a closing date, but the buyer allows the seller to stay in the home for an additional amount of time. However, the seller must vacate within 30 days in order for the buyer to assume owner/occupant status.

Interest Rates May Be Lowered Due to Seller Contribution

Points can be purchased to lower the interest rates on a loan. This money must be paid upfront. If the buyer doesn’t have the funds on hand, he can ask the seller to pay the costs. That way, the interest rate drops so that the mortgage payment is more affordable for the buyer.

Other Requests Can Be Made in the Contract

Last, but not least, buyers can make other requests in the purchase contract. An example is asking the seller to include the furniture, above ground pool, hot tub, etc. The buyer may even ask that the seller provide money for purchasing appliances or installing new flooring.

The home purchase contract may seem like a lot of legal jargon, but you need to understand what the contract is asking of you and how it can help you. If you’re working with a real estate agent from Louisville Homes Fast, you can often find referrals for legal counsel if they’re needed. Whether you’re local or not, ask your agent for help!

Recent Posts

Autos2 days ago

In a Car Accident? Here’s How to Find a Great Lawyer

If you’ve recently been in a car accident, you know that it can be an overwhelming experience. Not only do...

Education3 days ago

Considering Therapy? Here’s a Few Common Therapy Techniques Explained

If you’re considering therapy as a means to improve your mental health, you may be curious about the type of...

home repairs home repairs
Home Improvement4 days ago

Top 5 Home Repairs You Should Never DIY

DIY home repairs are all the rage these days. But before you jump on the bandwagon, there are some things...

Health2 weeks ago

The Power of CBD Oil for Relaxation: How to Use it for Sleep and Stress Relief

If you’re struggling to get a good night’s sleep or feeling stressed, try CBD oil. CBD oil has a moment...

General2 weeks ago

Benefits of Getting your Mobile Phone Repair

Mobile phone repair is a task that needs high skills and experience. That is why we always recommend users trust...

Home Improvement2 weeks ago

Great Ways To Clean To Get Your Security Deposit Back In Full

Moving is almost always stressful as there are tons of things to plan and do. Getting your security deposit back...

Home Improvement2 weeks ago

DIY Garage Door Repair: Tips and Tricks for Fixing Common Problems and Maintaining Your System

If your garage door needs to be fixed, wait to call a repairer. Many common problems can be fixed quickly...

Education4 weeks ago

7 Tips to Choosing the Right University for You

Are you considering continuing your education at university? If so, it can be overwhelming to decide which school is right...

Finance1 month ago

3 Ways Loans from Credit Unions Are Different From Major Banks

If you’re in the loan market, you may wonder if a credit union is the right choice. Here are three...

Food1 month ago

The World of Coffee: Exploring the Aromas, Flavors, and Benefits of the World’s Most Popular Beverage

Coffee is one of the world’s most popular beverages, enjoyed by people of all ages and backgrounds. It’s also one...

Education2 months ago

New Driver? 5 Things to Consider When Looking for Driving School

When it comes to choosing a driving school, there are many factors to consider. Not all driving schools are created...

Home Improvement2 months ago

Landscape Irrigation Systems: The Basics

If you’re a homeowner, you know that keeping your lawn and landscaping looking nice can be a lot of work....

Travel2 months ago

5 Things to Look for in Luxury Hotels

When it comes to luxury hotels, there is a lot to look out for. Here are five key things that...

Home Improvement2 months ago

Is There a Difference Between Commercial and Residential Concrete?

If you’re a contractor, you know that concrete is a versatile construction material. But did you know that there are...

Law2 months ago

5 Tips to Find the Right Litigation Firm

When it comes to selecting the right litigation firm for your legal needs, choosing wisely is of utmost importance. It’s...

Categories

Archives

Trending