A purchase contract is a legally binding agreement to buy a home and clarifies the terms of transactions between the buyer and the seller. When looking to buy a home in Beverly Hills, you need to ensure that you have a contract or an agreement to sell. With the contract, both parties safeguard the property, and their interests, and help with the transfer of liabilities.
There are details that you should look for in a purchase contract, and it should involve the following facts:
Personal Details
Make sure that your name is written correctly on the contract before signing. Some other personal details might be necessary before you can purchase, and the great Beverly Hills real estate agent you select will go through them with you. If you have any questions, you can direct them to your agent so that you can get accurate answers.
Amount
The purchase contract will include the price you are offering as a buyer, but also the type of money (be it cash or financed) the down payment amount, the escrow amount, and closing costs. This way, you can be sure about the amount you will spend from inspection to the final purchase.
The type of closing costs is in most cases a small percentage of the purchase price. This can be between 2% to 5% depending on your offering. Title, Escrow are the largest 2, but HOA, transfer, and tax-related fees come into play.
Terms of possession
Beverly Hills home buying itemizes many terms on the purchase contract. One of the biggest terms in a time of possession, aka when the buyer gets full access to their new home. Interestingly, this can be well before, during, or after closing. In Beverly Hills real estate, almost EVERYTHING is negotiable!
Contingencies
Contingencies represent a list of possibilities that will decide if the sale moves forward or not, and these are listed in the offer documents. Inspection, Financing, and Appraisal are often the big 3, but many others exist. For financing, as an example, you might not have the cash to purchase your dream home. In this case, you may need financing, and a lender has to provide you with a loan. Otherwise, you can get out of the contract. A contingency will allow you to cancel the purchase if you find a problem with the loan.
Another example lies with the inspection. Not all homes are perfect, and after inspection, there might be costly repairs needed. You will be able to ask the seller to reduce the price, offer to do repairs, or cancel.
Amendments
Amendments represent any contractual changes or corrections that the seller and the buyer agree to after the offer is accepted. When buying a house, you should read the contract carefully and suggest changes you want to make so that you and the seller can both sign. However, if not done then, you may choose to try to amend the offer terms. Be warned; both parties have to agree.
Conclusion
My 1 big takeaway? Break down the purchase contract with your agent, hopefully, me :). This document is a legally binding agreement between the buyer and the home seller. It outlines the terms and conditions of the sale and the financial obligations of both parties. To understand this contract, learn about offers, and find out all the little tips to make sure your offer terms are best for you.
