| The real estate purchase agreement is more than | | | | the local custom or language is. This lets you add |
| just a casual offer. The moment you and the seller | | | | another buyer to the deal, or assign the whole |
| sign it, it is a legally binding contract. Since you can | | | | contract to another. |
| put what you want in your offer, why not include | | | | Let the seller pay. Specify that the seller pays for |
| some of the clauses that smart buyers use to | | | | the closing fee, the title insurance, the recording fees, |
| protect themselves and save money? Some | | | | and even the points on your loan. Sellers often just |
| suggestions follow. | | | | want the sale at a given price, and don't care about |
| Six Purchase Agreement Clauses | | | | the details. What if they do care? You have given |
| A better earnest money clause. You can put a small | | | | yourself some negotiating points. Get something for |
| earnest money deposit down and still be taken | | | | dropping each of the costs you included, like maybe |
| seriously, if you include a clause like this: "$100 | | | | a reduced interest rate if the seller is financing part |
| earnest money deposit, to be increased to $2,000 | | | | of your purchase. |
| upon acceptance of this offer." You could also have it | | | | Basic financing contingencies. Suppose the loan |
| increased "when all contingencies are met." This way, | | | | doesn't come through, and you can't buy the home. |
| if there's an argument about you backing out | | | | You'll lose your deposit, unless you have something |
| because the inspector found foundation damage, for | | | | like this in the agreement: "Subject to buyer obtaining |
| example, you won't have your money tied up while | | | | a firm commitment for suitable financing within ten |
| this is being resolved. | | | | days." If the seller balks at the vague language, you |
| Inspection contingencies. Ask an agent about the | | | | can specify what "suitable" means in terms of |
| wording, but basically you want something like this in | | | | interest rate and such. |
| the purchase agreement: "Contingent upon a home | | | | Spouse's approval clause. This could be as simple as |
| inspection and buyer's approval of the results; | | | | "Subject to a walk through inspection and approval |
| inspection to be done at buyer's expense within ten | | | | of home by wife (or partner - state their name) |
| days." Now you the right to have an inspection done, | | | | within two days." Now, if your wife says no within |
| and if anything negative is found, you can refuse to | | | | two days, you can back out of the deal and get |
| "approve" of the results, and get your deposit back, | | | | your deposit back. If you want the seller to agree to |
| or you could re-negotiate a lower price. | | | | this one keep the time frame as short as you can. |
| Assignation. If buying with a partner who isn't there | | | | The above clauses are often called "weasel clauses," |
| to sign the offer, or if you want to "flip" the deal to | | | | because they give you ways to back out, or "weasel |
| another investor, or if you may need to involve a | | | | out" of a real estate agreement. Don't worry about |
| partner for purposes of funding the deal, be sure | | | | the label. A seller has the right to say no to your |
| that the purchase offer gives you that right. Putting | | | | offer in any case. You, on the other hand, have the |
| "and/or assigns" after your name on the offer is | | | | right to use these purchase agreement clauses to |
| usually sufficient, but ask the real estate agent what | | | | protect yourself. |