What’s in a Sale Agreement?
A purchase and sale agreement sets a purchase price for the home and a series of terms and conditions. For instance:
- Contracts routinely depend on the ability of a buyer to obtain financing and/or sell their current home, which is why most sellers prefer buyers with mortgage pre-approval letters.
- A growing percentage of transactions involve a home inspection, or a physical review of the home by a trained and independent observer. Generally the buyer's agent arranges the inspections, which the buyer typically pays for.
- Lenders will establish numerous conditions before granting a loan. They will want a title exam, title insurance to protect against title errors, termite inspections, surveys and an appraisal to assure that the home has sufficient value to secure the loan.
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