`s and don`ts for homebuyers »
A purchase agreement is a legally binding document that outlines the terms and conditions between a homebuyer and seller. It`s a crucial part of the homebuying process that ensures both parties are on the same page and protects their respective interests.
However, navigating this legal document can be overwhelming for first-time homebuyers. That`s why we`ve compiled a list of do`s and don`ts to help you understand what to look for in a purchase agreement.
Do`s
1. Read the agreement carefully: A purchase agreement is a legally binding document that can have serious consequences if not taken seriously. Take the time to read every clause carefully and seek legal advice if necessary.
2. Consider contingencies: Contingencies are clauses that allow you to cancel the agreement under certain circumstances. Common contingencies include financing contingency, home inspection contingency, and appraisal contingency. Make sure the agreement includes the contingencies that are important to you.
3. Be specific about repairs: If the home inspection reveals any repairs that need to be done, be specific about what needs to be fixed and who is responsible for paying for them. The agreement should outline a timeline for completing the repairs.
4. Determine the closing date: The closing date is the date on which you take possession of the property and pay the remaining balance. Make sure the agreement includes a specific closing date that works for both parties.
Don`ts
1. Don`t skip the home inspection: A home inspection is crucial to identify any potential issues with the property. Skipping the home inspection can lead to expensive repairs down the line.
2. Don`t waive contingencies too easily: Contingencies are there to protect you as a buyer, so don`t waive them too easily. Consider each contingency carefully before signing the agreement.
3. Don`t rush the process: Buying a home is a big decision that should not be rushed. Take the time to review the agreement and seek legal advice if needed.
4. Don`t forget about closing costs: Closing costs are fees associated with the purchase of a home that are due at closing. Make sure to include these costs in your budget and negotiate with the seller if necessary.
In conclusion, a purchase agreement is a crucial part of the homebuying process that needs to be taken seriously. By following these do`s and don`ts, you can ensure that you are protected during the homebuying process and avoid any potential issues down the line.