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What should be in a real estate purchase agreement?

On Behalf of | Mar 1, 2021 | Uncategorized

Buying a house or other type of residential property is a significant step for a Maryland homebuyer. This is one of the most important financial and legal decisions an adult will make in his or her lifetime, and it’s important to be careful and cautious while walking through this process. One way to do this is by ensuring the real estate purchase agreement is thorough and accurate, containing necessary terms and conditions.

Details of the contract

A purchase contract can be custom-tailored for the individual situation. Every transaction is unique, and each buyer and seller may have specific objectives he or she wants to accomplish. However, the following conditions are important for every type of real estate contract:

  • Which party will be responsible for the closing costs? If the two parties will both contribute toward this cost, the contract should outline how much.
  • Certain terms involving the financing of the purchase should also be included in the contract as well.
  • The contract should include terms regarding an inspection on the property and what will happen if the home does not pass.
  • Any purchase agreement should also include a proposed closing date, as well as what will happen if the sale falls through or either party backs out.

A good contract will protect the interests of both parties in case of a problem, issue with the financing, inspection failure or other issue.

Protecting long-term interests

A real estate purchase agreement should provide protection for each party involved. Strong contracts offer long-term benefits as they can protect buyers or sellers from a sale that may ultimately lead to financial or legal complications. As with any type of legal agreement, there are benefits to having a Maryland attorney review the terms before signing it.