The Contract to Purchase

The buyer’s offer to purchase a home, when accepted by the seller exactly as presented creates a legally binding contract.  If the seller changes the offer, he has rejected the offer and made a counter offer.  If the purchaser accepts the counter offer, exactly as presented, then it becomes a legally binding contract.  The contract is a blueprint for the transaction which governs the parties’ rights and responsibilities.

Essential Provisions of the Contract:

  • Names of the parties.
  • Purchase price.
  • Address.
  • Legal description.
  • Contingency for financing, including interest rate, length of mortgage, and amount of mortgage.
  • Requirement that clear title be furnished by the seller as evidenced by a Title Insurance Company commitment and policy.
  • Date of closing and date possession of the property is to be transferred.
  • Proration of taxes and other prorate-able items.
  • Risk of loss prior to closing.
  • A list of appliances and personal property to be included with the real estate.
  • Provisions regarding the return of earnest money.
  • Remedies available to the parties in the event of a default.
  • Rights of inspection
  • Survey requirements

The contract must be signed and dated.  Any change, deletions or interlineations must be initialed.

The contract is the blueprint for the transaction.  It establishes your rights and obligations.  It is a complex matter and will impact your future.

Before signing a contract, you should have an experienced attorney in your corner helping you.  For your future security, call us now.