Review Your Home Purchase and Sale Agreement Before The Seller Signs It

For most people, buying a single family home or condominium is the largest purchase they will make in their lifetime. The purchase agreement is the contract signed by both the buyer and the seller.  It is the document that legally formalizes the transaction and commits both parties to precise contract terms.

The signing process is supposed to be guided by real estate professionals who explain what each section of the agreement  means. If everyone has done their job correctly, your purchase agreement includes the property description, the price and all the contingencies and conditions.  It will note the amount of earnest money, the closing costs, all items included in the sale, and the date you will get the keys to your new home.

Even though you are getting close to being done with the purchase, this is not the time to rush, because there is another very important component of your purchase agreement you will want to read slowly and carefully.

The California purchase and sale agreement typically used to purchase homes includes several sections explaining the rights and obligations of the seller and the buyer. These paragraphs are sort of like the “small print” instructions that come with prescription medications or new credit cards. Do you really need to read and understand every word? The language is dense and confusing but taking the time to understand your rights as a buyer could save you big headaches later.

What items should buyers look for before signing the purchase agreement?

Sometimes problems surface with a home after the purchase is complete. Buyers may discover defects in the home that were missed in the inspection. Undisclosed water damage, defective foundation, leaky roofs, shoddy electrical work hidden behind walls and property line disputes are examples of common post-sale problems. Contract breaches can also cause big issues. Your ability to collect damages and fix issues promptly could be determined by the fine print in the purchase agreement you signed.

Ask Questions Until You Fully Understand the Purchase Agreement

The home buying process has become more streamlined and efficient now that many processes are done electronically. E-signing is commonplace, fast and saves paper. Ask for a hard copy of the documents before you sign them and make detailed notes if you are unclear. If you have questions about the language in the contract, ask questions:

• • What if we find problems with the home after we buy it?
  • What is the difference between mediation, arbitration and filing a lawsuit?
  • If a problem occurs, who pays for your cost to make repairs to your new home?

Your real estate agent is not your attorney

Your agent is a specialist in buying and selling property and does not have the legal expertise to advise you on the nuances of the complicated disclosures in your purchase agreement. If you have uncertainty about aspects of the home you are buying, consult a real estate attorney prior to closing your transaction.

Know Your Rights. Protect Yourself.