The Home Purchase Contract | Columbus Homes For Sale

The Contract:

The following is an example of the Purchase Contract. Not all

transactions utilize the

same

style or wording, but the following is a good

example of items found with-in most real estate

purchase

contracts.

Premises:

This paragraph describes the property you are buying. Include any personal property,

such as

refrigerator or

washer/dryer, that you want included as part of the purchase price.

Purchase Price:

This paragraph not only tells the seller what you are offering for their property,

but also how you

are going to

finance it and when you expect your mortgage approval.

Acceptable funds.

In Central New York, anything over $500 has to be in a cashier's check. Be

sure that this check

is made

payable t. Be sure that this check is made payable to yourself. You

will endorse it over to the sellers at

closing.

Real Estate Brokerage Fee.

This paragraph discloses the agency relationship with the selling

broker and the

amount of

commission he or she will receive as selling broker.

Seller's Representations.

This paragraph states the items that the buyer can rely on, including

the fact that the

major

mechanical systems will be in working order at time of closing.

Title Documents.

These are the documents the seller gives the buyer to prove that the seller

owns the property,

that they

have "good title" (no liens on the property), and no unpaid taxes.

These documents include the abstract

(history of the

property), survey (map of the property),

and tax search.

Marketable Title.

The seller promises to give buyer a title free of major title problems, such as a

pending

foreclosure action. A

utility easement that gives you phone service, electric, or cable will

not make the property

unmarketable.

Closing.

Unless the words "time is of the essence" are added to the closing date, the date

written here is a target

date that

buyer, seller, attorneys, and lender will work toward. This is not

a "carved in stone" date.

Closing documents.

This paragraph lists the documents that will make you the owner of the

property.

Adjustments. Any taxes, fuel oil, rents, or other expenses will be prorated to the day of closing.

Pre-closing Inspection.

You have the right to look at the property before you close. Usually

the pre-closing

inspection takes

place the day of or day before closing.

Possession.

This paragraph stipulates when the buyers can move in. Buyers and sellers should

work together to

determine

whether buyers can move in right after closing or sometime the next

day.

Recording Expenses.

This paragraph sets out the fees that the buyer and seller will owe to the

County Clerk in

order to

record the deed and mortgage documents, thereby showing the new

owner.

Assignment.

Unless otherwise stipulated, the buyer cannot transfer this contract to another

party.

Risk of Loss. Seller is responsible for the property until closing.

Miscellaneous.

Seller receives credit at closing for property taxes he/she has already paid ahead of time that

runs past closing.

Buyer receives

credit for any taxes he/she pays at closing that cover the

period during which the Seller owned the

property.

If the property is damaged between the time the contract is signed and the time of closing, it is

the Seller's

responsibility to

repair the damage. Unpaid water and utility bills (through the day of

closing) are also the Seller's

responsibility.

Seller and Buyer agree to correct any mistakes made at closing (e.g. math calculations, signing bank documents that were
not available at closing, etc.).

Once the closing takes place, the transaction is over and the contract terms are no longer enforceable; except:

The Seller's representations as to the condition of premises.,

The Seller's responsibility for unpaid bills and property damage.

Both party's obligation to correct errors made at closing,

Contingent Provision:

This provision outlines "who pays what" in the event that the lender requires that repairs be

made. When

negotiating these

terms make sure that you are familiar with what your lender is

likely to require.

These tests are conducted on properties without public water connections, public sewer hookups

or both. Again,

find out what

tests (and test results!) your lender requires. For example, some

lenders require a more detailed

water analysis than the one

the Department of Health requires.

Notice.

Any changes should be made in writing and delivered to the addresses listed on the first

page.

Agricultural District Notice.

If the seller checks this box, then the property you are purchasing

may have noise,

dust, and

odors associated with farming.

Persons Bound.

If you sign this document, then you are obligated to follow through with the

terms. This is a real

contract.

Lead Based Paint Contingency Addendum and Disclosure.

If the house is built before 1978,

the seller will tell

you if they

have had it tested for lead paint, and you will have the opportunity

to have it tested yourself.

Attorney Approval.

If you check the box making the contract contingent upon attorney

approval, your attorney

must review

the contract and approve it before it becomes legally

binding. If your attorney does not disapprove it

within 5 days after he or

she has received it,

then the contract is automatically approved and binding.

Purchase Contract

The Anders Team
614-527-0811

Real Estate Essentials for Home Buyers!

The Buying Process

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