There is so much that goes along with the purchase of a property for sale in Whistler. One of the key components being the purchase contract. If you’re not a lawyer or real estate professional, understanding this contract can be difficult. There are several key parts of a purchase contract that need to be reviewed before signing. This is to ensure every part is included, there are no unfair contingencies, and you agree to the terms and conditions of the contract. As your REALTOR I want to help get ahead of the game. Part of that means learning about purchase contracts. Follow along as I go through the basics of an agreement like this one.
What’s a Purchase Contract and What’s Included?
A purchase agreement is a contract between the seller and the buyer that safeguards both parties until the buyer takes possession of the property. This way, if any problems come about before the new owner moves in, both sides of the contract will be protected.
A purchase contract is drafted after the buyer and seller come to an agreement on the price of the property for sale in Whistler. Once this happens, the agents on either side of the deal will determine the appropriate terms (with input from the buyer and seller). It is important that you are called upon during the negotiation in order to have a successful contract.
In the agreement you will find a variety of details specific to your deal. For example; the price and how the buyer will be paying for the home, good faith deposit, property details, closing date and when the buyer can take possession, what possessions are being sold with the home, closing costs, and any contingencies.
How the Contract Protects You.
Now that you have an idea of what a purchase contract is, you’re probably wondering how it works to protect you. The agreement is drawn up as a guide in the event something goes sideways before closing. Inside the contract there should be a portion outlining what happens if the deal doesn’t go to plan. Having a well thought out contract is a great way to avoid conflict and confusion during your transaction. It will allow things to proceed smoothly and efficiently.
Basic Contingencies on a Property for sale in Whistler
There are a few scenarios where a contract may be voided. For instance, the buyer’s inability to finance the home, the buyer hasn’t sold their previous home, the home received poor inspection results, or the property is overpriced.
If the buyer can no longer afford the home due to a financial problem, this can nullify the agreement. Many buyers choose to sell their current home before buying another one in order to successfully make payments. If they are unable to do so they may be forced to back out of the contract. Poor home inspection results can also cause a deal to fall through. Especially, if the issues have not already been disclosed. If the home is found to be overpriced after being appraised, the buyer’s mortgage terms could change. This may require a new purchase price to be negotiated.
These are all situations where the contract could become void. Which is why it is important as the buyer and the seller to understand how the terms and conditions can affect your outcome during the sale.
Purchase contracts are an important part of a real estate transaction, and should not be taken lightly. There are various details to pay attention to before you decide to sign off. To learn more about purchase contracts and what’s involved contact me today. I’d be happy to help answer any questions regarding the purchase of a property for sale in Whistler. Check out my brokerage site for more information. I look forward to working with you 🙂