Real Estate Purchase Contract
October 8, 2009 by ClariTree Team
Filed under Featured Real Estate
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| Make sure you are listed as the buyer(s). If you are buying a home that was recently bought and renovated, depending on the financing option you are choosing you might need to wait 90 plus days since the last title transfer before you close on your new home. If anyone is to be taken off or added to the transaction, it can usually be done with an amendment from escrow/title/attorney, but check with your lender.
You must provide a copy of the deposit receipt and a copy of the front and back of the earnest money check with the purchase contract. Compare the amount stated on the purchase contract to the photocopy of the deposit check. They need to match. If the deposit check is for $5,000 and the purchase contract states the deposit is $10,000, you are missing a deposit check. Make sure the deposit check was written from your account. The account from which the check was written must be verified with 2 months’ statements. Make sure you check for a specific Loan Contingency time period. Once this contingency date has passed, if you are unable to obtain financing you may lose your deposit, unless you have made the offer contingent on being approved for financing Check for an Appraisal Contingency. If this section is checked the property must appraise for at least the purchase price or you may cancel the transaction without losing the deposit. If you wish to proceed you would have two options from there you can bring the difference to the closing table as additional cash investment or the seller can lower the purchase price on the real estate purchase contract. Make sure the section regarding occupancy is correct. An issue will be created if the purchase contract states the buyer does not intend to occupy the property as the primary residence and you have the transaction structured as an owner occupied, primary residence purchase. If any personal property, such as furniture, art, appliances, etc., is to be included in the purchase price, the property must appraise for the full purchase price without these items. No value can be given to personal property. Sometimes people make offers on fully furnished homes, none of the furniture can be included in the appraise value. If there is a credit from the seller for closing costs, make sure you make your loan officer aware. Although it is ultimately the closing company’s responsibility to make sure this happens, a good Loan Officer (and Processor) will also check this for the client. If the purchase contract is marked “subject to attached counter offer…”, make sure you have your real estate agent forward any/all counter offers to your loan officer. The entire purchase contract must be initialed/signed by you and sellers. |
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Real Estate Purchase Contract
