Whether you are buying or selling real estate, it is important that you understand the basic steps of a real estate transaction.
Purchase Agreement. The first document signed by both parties is the purchase agreement. THIS IS A BINDING CONTRACT AND CONTROLS THE ENTIRE TRANSACTION. FOR THIS REASON, YOU SHOULD NOT SIGN THIS DOCUMENT WITHOUT HAVING AN ATTORNEY REVIEW IT FIRST. It is extremely important because it contains all the essential terms of the agreement. It will contain the names of the parties, the description of the property, the purchase price, the deposit, the financing arrangements and the time for the closing. You can also make the transaction contingent upon many factors. These may include satisfactory financing, a satisfactory survey or inspection, the sale of your present home, etc. It is not enough to discuss these items with the other party. For the parties to be bound by these terms, they must be included in the purchase agreement. By discussing your concerns and requirements with an attorney, the purchase agreement can meet your particular needs.