Unlike contracts for the sale of commercial property, the terms of a residential purchase contract are fairly standard. The attorney for the seller typically prepares the contract for sale on a standard form with an attached rider to address more specific issues related to the transaction or the buyer’s needs. Below is an overview of the terms you can expect to negotiate prior to the execution of an agreement.
Mortgage. The financing of the purchase is one of the most significant areas of the purchase agreement. There are multiple avenues for financing a home purchase. The parties must explicitly detail the terms of the mortgage in the contract. When a third party mortgage provider agrees to provide the loan to the prospective purchaser, the parties agree that the purchase is conditional upon the provision of the loan by the mortgagor within a specified period of time. The buyer retains the right terminate the transaction if he is unable to secure the commitment. The buyer must also decide whether the existing mortgage will be assigned to the new lender in the transaction.
Purchase offer. The purchase price for the home is usually the first item that buyers and sellers negotiate when formalizing their agreement. The purchase price is typically negotiated by the broker representing each party. The purchase offer details the amount the purchaser is offering for the home, the amount of the down payment and which party will bear the closing costs.
Conveying title. Sellers should be prepared to transfer marketable title free of encumbrances to the buyer. Most purchasers will hesitate or even refuse to consummate the transaction if clouds on title exist and are not cleared prior to the sale. The purchaser generally obtains title insurance policy to protect itself against unknown third party claims in the future.
Closing date. While the parties generally negotiate the closing date, it can fluctuate depending on other factors. For example, it may be altered due to the presence of contingencies or the seller’s need to make repairs based on the inspection report.
The experienced team of attorneys at the Law Offices of Mark Weinstein, P.C. can help you litigate your real estate claims. Contact Mark Weinstein and his colleagues at (770) 888-7707 or visit them at http://www.markweinsteinlaw.com to find out how they can advise you.