(Also known as your initial offer!)
Congratulations on taking the next step towards homeownership! This guide is designed to help you navigate through your real estate purchase agreement. It's a brief overview to make the contract easier to understand. Remember, this is not a legal document but a simple guide. Always consult with your realtor for a detailed explanation and advice.
Date and Parties: The agreement starts with the date and identifies you (the "Buyer") and the seller ("Seller").
Property Details: The address, township, county, and zip code of the property you are purchasing, including all permanent improvements and fixtures, are listed. It also details what is not included in the sale.
Total Purchase Price: The total amount you have agreed to pay for the property.
Earnest Money: A deposit you make to show your good faith. This section specifies how much, who holds it, and conditions for its return or application to the purchase price.
Method of Payment: How you intend to pay, including cash, new mortgage, or other methods.
Financing Details: If obtaining a mortgage, details like the type of loan, percentage of purchase price, and interest rates are mentioned. This section also includes deadlines for applying for and obtaining your financing.
Closing Date: Specifies when the sale will be finalized.
Possession: When you will officially take possession of the property.
Inspections: Your right to have the property inspected and how to proceed based on those inspections.
Survey: Details about the property survey, including responsibility for obtaining and paying for it.