The Purchase Agreement

The Homebuying Process

in 10 Easy Steps

What is it?

The purchase agreement is the contract between you in the seller to purchase the home. It is also sometimes called a real estate sales contract, or purchase contract. It contains all the necessary information to ensure you and the seller have a mutual understanding of the sale. Some of the things included on the purchase agreement is:

Name of buyers
Name of sellers
Address of property
Property legal descriptions
Purchase price
Mortgage type / amount
Closing date
Earnest money deposit amount

Attachments

When it comes time to sign the purchase agreement you may notice some other documents attached to it. These documents may be:

Seller Disclosures: This document is completed by the sellers with the best information available. It contains information regarding the property and the condition of things such as the roof, appliances, insulation, etc.
Lead-Based Paint Disclosure: Just like the seller disclosures, this form is completed by the sellers with the best information available. They are to state if they know if there is any lead-based paint in the home. This where you the buyer, can utilize or waive your right to obtain a lead-based paint inspection.
FHA / VA Addendum: This form contains general information pertaining to specifically FHA or VA loans. The most important piece of information being the amendatory clause. This clause states that the buyer is legally not required to follow through with the sale if the appraised value comes back lower than the purchase price.
General Addendum: These addendums are used to make general changes to the purchase agreement. They can be used for anything such as correcting a name, or address, or changing the purchase price.