The official document received after
mutual acceptance
The point when both the buyer and seller agree on the price and terms of a deal.
on an offer stating the final sale price and all terms of the agreement. The specific items in this contract vary by state, but will almost always include the following:
- Final sale price
-
Earnest Money
The money buyers pay one to three business days after agreeing with the seller on a price for the home to show that they're serious about the offer.
amount with deposit instructions; it's usually paid by a personal check, or in some markets, a cashier's check, one to three days after the document is signed
- Closing date
-
Title Insurance
Title insurance protects against losses resulting from problems with the title. The sellers pay for the buyer's policy, and the buyer pays for his lender's policy to ensure that the lender gets clear access to the title.
company information
-
Contingencies
Conditions included with an offer on a home that must be fulfilled before the deal can close. If a buyer or seller is unable to satisfy a contingency, then the offer on a home may become void.
for financing, inspections and the title
- Seller's agreement to provide a clear title of ownership
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Addendums
Documents included with a purchase and sale agreement that list additional information and/or requests made by the buyer to the seller for other items not stated in the agreement.
explaining any additional terms of the offer not included in the actual document
In states with escrow agents handling the closing process, the buyer's agent is responsible for preparing this document. In areas where attorneys handle the closing, they will prepare the document. It's signed by the buyer, seller and their respective agents. There will usually be included addendums for
inspections
A thorough investigation of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home.
, financing, and the
title
A legal document listing the history of ownership of the home. A title report lists all parties with a legal claim to the property, what items need to be cleared from title before the new buyer can take possession, and if there are any easements or encroachments on the property.
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