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Maria E. Cipollone's Blog

By Maria Cipollone | Agent in Coral Springs, FL

Quick road to understand the purchase agreement.


It was very hard to find the perfect house, in the right community, in the price range that your budget allows you to buy, but you did it. Now is time to put a deposit, prepare the purchase agreement and submit the offer.

The purchase agreement is the legal document that contour the terms and conditions related with this real estate transaction.  Legally speaking, it is wiser to have the terms written in understandable language to save future headaches.  Most states have laws called "Statute of Frauds" listings the types of contracts that must be written in order to be enforceable.

Florida's Statute of Frauds requires that any contract for the sale of real estate must be in writing or it is unenforceable.  All purchase contracts should included basic items such as: the purchase price, escrow deposit, financing terms, inspection periods,  and who is paying for title search and closing date.

Escrow deposit: It has to be large enough to assure the seller that the buyer is serious about purchasing the property. Escrow deposits should be refundable in the event the purchaser discovers matters during inspections that make the property unsuitable for purchase or purchaser can not be able to get financing. (If this is applicable).

Financing Terms:  Purchasers want broad financing contingencies so that they have the flexibility to obtain financing which includes pricing and terms that best meet their needs.

Inspections:  Purchasers will want the longest inspection period possible and the right to terminate the contract during the inspection period for any unexpected major repairs.

Title or Use: Buyers want assurance that no third party has acquisition rights that might trump the purchase contract. Contract language should force the seller to disclose up-front if there are any rights of first refusal in existence. The need for a waiver or termination of an existing right of first refusal could delay closing or, if exercised, terminate the contract. The buyer will want any such agreement waived before it expends significant funds on due diligence.

Maintenance:  All sellers  should maintain the property's physical condition in the same manner as of the date of the contract. This assures that the seller does not allow the property to deteriorate during the period between contract execution and closing time.

Maria Cipollone
Century 21 Tenace
954 240-5521
www.Flahomespecialist.com

Comments

By Arlene,  Tue Mar 12 2013, 11:45
Great article. Thank you for the explanation.
By anthonybronx65,  Tue Mar 12 2013, 11:52
Thank you for sharing your expertise with us. Hopefully, more people coming to Trulia will learn more from blogs like this one and will educate themselves about the market .
By sweetbelgica,  Tue Mar 12 2013, 12:10
Very good advice. Especially the one about inspection periods and the right to terminate the purchase agreement during the inspection period for any unexpected majoy repairs.
By David Brady,  Tue Mar 12 2013, 12:21
Fantastic blog with great information and research tools. Thank you.
By Cecile Carlyle,  Tue Mar 12 2013, 12:27
Great column. Excellent advice!
By Cecilia Marquez,  Tue Mar 12 2013, 12:32
I related to the part that was very hard to find the right home and understand all the purchase agreement complexity. Thank you for clarify the part about the escrow deposit.
By Gino Landetta,  Tue Mar 12 2013, 12:57
It is wonderful to hear what points to consider when you are ready to sign the purchase agreement and commit to buying the right property. Great advice.
By Giancarlos Gianni,  Tue Mar 12 2013, 13:02
I learned so much from your blogs. Thank you for your comments.
By Abby Rivera,  Tue Mar 12 2013, 13:09
I am so glad that you shared this information with us, really all this information can help to buyers and sellers understand a little big better what is the importance of the purchase agreement.
By Paolo Rossi,  Tue Mar 12 2013, 13:14
Great article. Thank you for your valuable comments.
By Paul Newell,  Tue Mar 12 2013, 13:23
Using such language as "the purchaser has the right to terminate the contract during the inspection period for any unexpected major repair". give you the power to cancel the purchase agreement. Make me feel good that I can understand better this part.
By Martin Franco,  Tue Mar 12 2013, 13:30
I like the part where the title company can ensure the buyers that no third parties has acquisition rights on the property that they are buying. Great post.
By loretta_perry,  Tue Mar 12 2013, 13:36
Love your comments. It is so good to hear what points to consider before making the check for the deposit and even worse. signing the purchase agreement.
By Elaine Harper,  Tue Mar 12 2013, 13:43
Nice to hear from a professional like you all these comments regarding the intrigacy of the purchase agreement.
By Pepino Marquez,  Tue Mar 12 2013, 13:49
I really like your blogs. Keep it up.
By Agustin Lindor,  Tue Mar 12 2013, 13:50
The mayority of potential buyers can be shocked at the complexity of the purchase agreement, thank you for help us to understand this part better.
By Marlenetorres906,  Tue Mar 12 2013, 13:55
Nicely done Maria. Thank you for sharing your professional comments with us.
By Alexis Joseph,  Tue Mar 12 2013, 14:01
Very good article with a great explanation of the purchase agreement and what to expect from the seller.
By Mery Haz,  Tue Mar 12 2013, 14:09
You make sound so simple. Thank you for your valuable tips.
By Billy J. Mieses,  Tue Mar 12 2013, 14:17
If you are thinking to buy a home this year, these are useful advice.
By Cameron Alejandre,  Tue Mar 12 2013, 14:23
Even if you are thinking to buy this year, is always good to know the terminology that is used on the purchase agreement, especially before you sign one.
By Rodolphe Gianni,  Tue Mar 12 2013, 14:29
Is good to know in what circunstances you can get your deposit back. Thanks you for the information.
By arlygarofalo,  Tue Mar 12 2013, 14:37
Thanks for sharing your comments. You took all the fear out of me about signing the purchase agreement.
By Mrosettini193,  Tue Mar 12 2013, 19:35
Excellent article. Great information shared.
By Antonella Lucio,  Wed Mar 13 2013, 04:43
I love your comments. Thank you for taking the time to help consumers like me to understand what can we expect from the purchase agreement.
By anthonybronx65,  Thu Mar 14 2013, 16:55
I posted to Facebook. It will be really helpful for a bigger audience.
By napier.napier,  Thu Mar 14 2013, 17:38
Great column and comments. Thanks for the good points.
By a_craig2,  Mon Mar 18 2013, 11:41
Excellent column. Great advice.
By silverbox55,  Mon Mar 18 2013, 17:37
Perfect timing for this post. It is very important to examine each component of the purchase contract carefully. Thank you it really helped me.
By Agustin Lindor,  Tue Mar 19 2013, 04:24
I found very valuable this article. I forward to my friends.
By Mark Faccinelli,  Fri Mar 22 2013, 13:37
As a future home owner I really appreciate your blogs and great comments.
By Martin Franco,  Sat Mar 23 2013, 05:44
Buyers will want the longest inspection period and the right to cancel if they discover major repair costs. Great advice! This clause was so importanr and really helped me to get out of my contract, after I did the inspection in a property that owner was selling AS IS.
By Gino Landetta,  Mon Mar 25 2013, 03:33
Given how complicated all the estipulations in the purchase agreement are, it is not surprising that normally potential buyers does not understand all the terminology that is included, but is great that you take the time to explain step by step.
By Emanuel Tomassetti,  Tue Mar 26 2013, 03:48
Perfect time to talk about the purchase agreement. We are finally looking at strong and steadily recovery in the US housing and now is the perfect time to invest in Real estate.
By Mariopiacci2000,  Tue Mar 26 2013, 05:17
Thank you for sharing these very important tips when it comes to the purchase agreement. Great article.
By Melany Morgan,  Sun Apr 14 2013, 08:56
This is very valuable information for consumers that want to get this road. Thank you!
By Maryann Toro,  Thu Apr 18 2013, 15:54
Loved your blogs. Anything concerning South Florida and home ownership interest us. Thank you for sharing with us.
By Leonard Pache,  Fri Apr 19 2013, 07:09
Thank you for you explanation of the purchase agreement and your invaluable tips.
By Mrosettini193,  Sat Apr 20 2013, 16:01
Thank you for your professional advice.
By Pia Leoni,  Thu Apr 25 2013, 13:45
Great advice. Legally speaking is wiser to have the term and condition of the purchase agreement in understandable language to save future headaches.
By amyfertig63,  Fri May 17 2013, 16:39
I am very happy that you share this invaluable information with us. Excellent advice.

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