Updated: Mar 27, 2020
What is the purchase agreement? It is a written agreement between buyer and seller. The buyer agrees to pay and the seller agrees to give the deed to the property.
The contract includes:
• Price, sales/closing date, offer expiration date, earnest money deposit amount
• This also clarifies who pays for inspections, survey, title insurance, property taxes, etc.
• Contingencies give buyers a chance to back out of the purchase. The three contingency terms are inspection, appraisal, and loan.
It’s important to review a contract thoroughly. If anything is unclear, ask your agent.
How the contract works
If the seller accepts, the offer becomes a binding agreement. If rejected, the seller can counter the offer. Both parties can counter as many times as they want until they sign a mutual agreement or one party stops responding.
How long does it take to close on a house?
Generally in Bay Area we have somewhere between a 21-30 day escrow period.
How to get out of a real estate contract?
Changing your mind after signing the contract could result in the loss of your earnest money. This is 3% of the purchase price.