Home Buying in Santa Clara>Question Details

Sassylassie1…, Home Buyer in Chicago, IL

does the buyer sign the purchase contract and give a deposit before they can do a inspection of a property?

Asked by Sassylassie1939, Chicago, IL Sat Jan 4, 2014

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6
That's negotiable, if the home is occupied most Sellers aren't going to permit this. My advice to buyers is why would you want to spend the money on inspections without knowing you've got a deal on the house. For all you know why you're wasting time and money doing inspections, another buyer comes in and signs a contract on the house with the seller.

While not intimately familiar with every purchase contract in every state, I've bought and sold in several states during the past 35 years and in every instance the contract gives the buyer a period of time in which to get inspections completed and financing in squared away. During this time if you learn things that modify your opinion on the value of the property you have the right to either renegotiate terms with the seller or terminate your offer and walk away.
0 votes Thank Flag Link Thu Jan 9, 2014
This depends on the terms of your agreement but I wouldn't allow any inspection without a higher level commitment from the buyer that includes a deposit.

Bill
0 votes Thank Flag Link Thu Jan 9, 2014
Usually, but not required.

Usually the Buyer does not want to pay $600 for an inspection unless they know that their offer has been accepted.

If you do the inspection after the offer has been accepted, then there is usually not enough time to compete the inspection before the earnest money deposit is due (3 business days). Usually. It can be done.

An alternative is to include in the offer that the deposit will be made in 7 days, instead of 3, to give you time to complete the inspection. If there are not a lot of competive offers, then this might be a winning solution.
0 votes Thank Flag Link Wed Jan 8, 2014
Generally speaking, yes! In the California Purchase Contract, the deposit is due within 3 days of execution. If you can get the home inspected on days 1 or 2 after signing, that would be fine...
0 votes Thank Flag Link Sun Jan 5, 2014
Yes, the buyer would be in contract before doing an inspection. The buyer wouldn't want to waste their money doing inspections if they aren't even sure that their offer would be accepted.
0 votes Thank Flag Link Sat Jan 4, 2014
The common practice here is to sign a purchase contract first. Having contract in place will allow you access to the property for the inspection. At the same time, you will have 3 working days to deliver the earnest money deposit to the title company. You may be able to run the inspections during this period. Keep in mind that everything is negotiable in a real estate transaction - find a realtor to work with and they will explain the common practices and will guide you through the buying process.
Web Reference: http://talisrealestate.com
0 votes Thank Flag Link Sat Jan 4, 2014
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