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 agreementÂ and submit the offer.
The purchase agreement is the legal document that contour the terms and conditions related with this real estate transaction.Â Legally speaking, it is wiser to have the terms written in understandable language to save future headaches.Â 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.Â All purchase contracts should included basic items such as: the purchase price, escrow deposit, financing terms, inspection periods,Â and who is paying for title searchÂ 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:Â 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:Â 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:Â All sellersÂ 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.
Century 21 Tenace