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March 18, 2013

Buying or Selling a Home

The Purchase Contract

How does an offer relate to the purchase contract?

It usually becomes the basis of the purchase contract, after the parties have come to an agreement on the terms of the offer.

In some areas, the purchase contract will include all provisions of the transaction; in other areas, another document will be drawn up by the buyer or the seller that covers such items as conveyance of title, provision for insurance, etc. In either case, you will want your attorney to make sure that the final document covers all aspects of the sale.

The bottom line is that buying and selling real estate almost always entails a contract. So, keep in mind that a typed or handwritten "letter or agreement" or "letter of understanding" signed by the parties will be binding if it meets the legal requirements of a contract. Don't sign something assuming it's not a contract and, therefore, not important. If something goes wrong, you don't want to discover too late that you've signed away important rights, failed to include important protections, or failed to receive what you expected.

>>What is an offer to purchase?
>>What might I include in my offer to purchase a home?
>>What is earnest money?
>>How is the offer negotiated?
>>How does an offer relate to the purchase contract?
>>Can oral promises constitute a contract?
>>When should we involve a lawyer?
>>What are the key provisions of the purchase contract?
>>What is an inspection rider?
>>What is an attorney-approval rider?
>>What is a mortgage-contingency rider?
>>May the seller refuse a mortgage-contingency rider or an inspection-contingency rider?
>>What happens to my earnest money deposit if we do not complete the sale?
>>Can a buyer sue a seller for backing out of the contract?
>>Are there any special considerations when you are buying a home from a builder?

Practical Law Home | Buying or Selling a Home | Basics of Buying a Home
Basics of Selling a Home | Why Real Estate Is Covered By Special Laws | Real Estate Brokers
*The Purchase Contract* | Financing a Home Purchase | The Closing | The Fair Housing Act
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