things to check before signing a house purchase agreement

نشر بتاريخ 2025-06-21 04:43:26

You’ve found the perfect home, made an offer, and now you’re looking at the purchase agreement. This is where things get real—and legally binding.

A house purchase agreement (also called a sale agreement or contract to purchase) outlines the terms of the deal between buyer and seller. Before you sign, it's essential to review every detail to avoid costly mistakes, disputes, or regrets.

Here’s a checklist of 15 important things to check before signing a house purchase agreement:

1. 🏷 Purchase Price

Double-check that the agreed-upon price is correct. This is the most obvious part, but errors do happen—especially during negotiations.

2. 💵 Earnest Money Deposit

Make sure the amount of your deposit (or booking advance) is clearly stated, along with where it will be held (e.g., escrow account) and under what conditions it is refundable.

3. 📅 Closing Date

Review the scheduled closing date and make sure it’s realistic. Also check who chooses the date and what happens if either party needs an extension.

4. 🔍 Contingencies (Escape Clauses)

Contingencies protect you. Common ones include:

Home inspection contingency
Appraisal contingency
Financing or loan approval contingency
Clear title contingency
Sale of your current home

📌 Make sure these are clearly listed—especially if you might walk away if conditions aren’t met.

5. 📦 Inclusions and Exclusions

Be specific about what’s included in the sale:

Appliances (washer/dryer, fridge?)
Window treatments
Light fixtures
Furniture or outdoor items

Also note what is excluded, if anything, to avoid disputes later.

6. 📜 Legal Property Description

Ensure the address and legal description of the property (plot number, boundaries, survey info) are accurate and match public records.

7. 🔧 Repairs and Maintenance Agreements

If the seller has agreed to make any repairs or upgrades before closing, those must be detailed in writing with a timeline.

📌 Verbal agreements aren’t enforceable—get everything documented.

8. 🧾 Home Inspection Clause

Even if the home looks perfect, include a clause allowing for a professional inspection. This gives you the right to negotiate repairs or cancel the deal if serious issues are found.

9. 💳 Financing Details

If you're getting a mortgage:

Include loan type, down payment amount, and expected interest rate range.
Make sure there's a clause allowing you to exit the contract if your loan is denied.

10. 🏦 Title Condition

Check that the contract includes:

A title search
A guarantee of clear, marketable title
The obligation to provide title insurance

11. 🧾 Property Taxes and Utilities

Review how property taxes, HOA dues, and utilities will be handled at closing. Will they be prorated? Who is responsible for what?

12. 🛑 Default and Cancellation Terms

Understand what happens if you or the seller break the contract—including penalties, refund rules, and dispute resolution.

13. 📝 Possession Date

Know exactly when you can move in. Sometimes possession is given at closing, but other times the seller stays longer. It should be spelled out.

14. 🏗 Zoning and Building Restrictions

Make sure you’re aware of any zoning laws or neighborhood rules that might affect your plans for the property (e.g., building a deck or renting it out).

15. 👩‍⚖️ Legal Review (Highly Recommended)

If possible, have a real estate attorney review the agreement—especially for high-value homes or unusual terms. They can spot legal risks you might miss.

Final Thoughts

Signing a purchase agreement locks you into a major legal and financial commitment. Take your time. Ask questions. Get help if needed. It’s always better to delay a signature than to regret one.