Once you sign a home purchase agreement, you’re no longer just thinking about buying a house – you’re legally committed to the deal. This contract locks in the terms of the sale, your rights, responsibilities and financial obligations.
Backing out can be difficult and costly, which is why it’s so important to understand what you’re agreeing to before you sign. A little caution can go a long way in protecting your interests.
Don’t just skim through the paperwork
The thrill of buying a home can make it tempting to rush through pages of legal language and just sign where you’re told. However, the devil is in the details when it comes to home purchase agreements. Buried in the fine print could be clauses that put you at a disadvantage and create issues down the road, such as waiving crucial rights, hidden fees or buying the home “as-is.”
Don’t assume anything. Take the time to read each section carefully and seek clarification if you have any questions or concerns. Remember, this is your deal and your risk.
Understand the contingencies
A home purchase agreement may have conditions that must be met for the deal to go through, commonly known as contingencies. These give you a legal way out of the deal if things go sideways. Most contingencies have strict deadlines. Missing them could mean losing your earnest money or being forced to close on a property you’re no longer comfortable buying.
Know the seller’s obligations
Is the seller required to fix issues uncovered during inspections? What happens if they agree to make repairs but don’t follow through? Such details about what is expected of the seller should be in writing. Verbal promises don’t always hold up in court, so you should ensure that the agreement doesn’t leave anything out.
Consult before you commit
It’s wise to have your home purchase agreement assessed by a legal professional before putting pen to paper. A thorough review can help you spot red flags, make sense of legal jargon and avoid blunders that could jeopardize your investment.