What to Check in a Home Purchase Contract Before You Sign
A purchase contract sets the terms for your home purchase: the price, deadlines, what the seller must deliver, and what happens if something goes wrong. Many buyers focus on the price and the property and overlook the conditions that protect them. This checklist covers the terms we most often review with clients in Jefferson, Lewis, and St. Lawrence Counties.
1. Price, Deposit, and Where It Is Held
Confirm the purchase price, the amount of the initial deposit, and who holds the deposit. Make sure the contract states when any additional deposit is due and under what conditions the deposit can be returned to you.
2. Financing Contingency
A financing contingency allows you to withdraw from the contract, and sometimes recover your deposit, if you cannot obtain a mortgage on the agreed terms. Check the loan amount, interest rate range, and the deadline for your loan commitment. A deadline that is too short can leave you with little time to act.
3. Inspection Contingency
Confirm how long you have to complete a home inspection, and what options you have if the inspection reveals problems. Some contracts require you to ask for repairs or a price adjustment within a fixed period. Missing that window can affect your rights.
4. Closing Date and Possession
Verify the closing date and whether you will receive possession at closing or at a later date. If the seller will remain in the home after closing, the contract should describe that arrangement and what happens if the seller stays past the agreed date.
5. What Is Included in the Sale
Review the list of included fixtures and appliances, and confirm that items you expect to receive, such as a shed, window treatments, or a stove, are named in the contract. Items that are not listed may be removed by the seller.
6. Title and Survey Items
Ask for a title search before closing, and review any exceptions or items it reports. If the property has a survey, confirm that it matches the description in the contract. Sort out questions about the title before you are committed to closing.
7. Costs and Who Pays Them
Confirm how closing costs, transfer taxes, prorated property taxes, and any repair costs will be divided between you and the seller. Each of these can shift a significant amount of money at closing, so they should be clear in the contract.
Why a Local Attorney Helps
Contract terms are only useful if you understand how they work together. A deadline in one clause can affect your rights under another. Our office in Watertown reviews residential purchase contracts with buyers and sellers across the region, and we explain the terms in plain language before you sign.
This article is general information and is not legal advice. Your contract and deadlines depend on your specific situation, so please review your agreement with an attorney before you sign.
Talk With Us Before You Sign
If you have a purchase contract you would like reviewed, call (315) 777-4378 or visit us at 120 Washington Street, Suite 401, Watertown, NY 13601. Office hours are Monday through Friday, 8:30 am to 4:30 pm.
