Facts about the Printable Real Estate Purchase Agreement PDF template
- 1 Facts about the Printable Real Estate Purchase Agreement PDF template
- 2 Why is the free printable real estate purchase agreement PDF used?
- 3 Who Would Use the free printable real estate purchase agreement PDF?
- 4 When Should You Use the free printable real estate purchase agreement PDF?
- 5 What are the Consequences for not Using a free printable real estate purchase agreement PDF?
- 6 Steps for Filling Out a free printable real estate purchase agreement PDF Form
- 7 Quick Questions
Why is the free printable real estate purchase agreement PDF used?
This agreement is use to help clarify a real estate transaction between a buyer and a seller. It will cover any financing conditions for the buyer. The earnest money deposit or good faith money is set with the offer, and it should be noted which escrow office will be handling the closing. The terms and conditions of the sale, such as inspections can be spelled out. The American Society of Home Inspectors offers a home inspection checklist to help remind you of inspections you may want or need.
The agreement is used to break down the fees and closing costs. The escrow officer or closing officer will read the contract to see how the two parties have agreed to pay for the services. The escrow officer will work with title department.
If there is a mortgage lender involved, that lender will use the contract to prepare the loan and see the agreed upon final price and may need to see some of the terms and conditions of the offer in order to fund the loan.
Who Would Use the free printable real estate purchase agreement PDF?
The people that should use the free form are a for-sale-by-owner homeowner and the potential buyer. For-sale-by-owner sellers benefit from the purchase contract because it is all laid it in a systematic process. Some of the areas it covers are:
- Who are the parties involved in the transaction
- What property is being sold
- How much is the purchase price
- When will escrow close
- When will the buyers take possession of the house
A buyer working with these types of sellers benefit from the contract because is covers areas that they will need to help them close the deal. The contract allows them a set amount of time to get their financing arranged, and it will give them the opportunity to review the plot map and the title. Redfin recommends the title should be inspected for liens, easements, and encroachments. The real estate contract allows both parties to do that. The title officer will pull the title for you.
Other people that can use this type of contract are transaction between family members or friends. Most deals where there are no real estate agents involved can use this form.
When Should You Use the free printable real estate purchase agreement PDF?
Buyers and sellers should use the real estate purchase agreement at the very beginning of negotiations. When a buyer shows interest in purchasing a home, the buyer should write an offer on the agreement. This will start the negotiations, and it might be accepted with the first draft.
The contract can be used after the buyer and seller reached a verbal agreement also. Before signing, both parties should check the details to make sure they are the same as previously agreed upon. Another option, is have the buyer and seller sit down together and fill out the agreement.
Once the buyer and seller have an agreed upon contract they can take it the escrow office. First American Title Company has a prepared a closing infograph that covers the entire process from bringing in the signed real estate agreement all the way to the close of escrow.
What are the Consequences for not Using a free printable real estate purchase agreement PDF?
The consequences for not using the free real estate purchase contract can be costly. When there is a written contract in place, there are consequences to the party that breaches the agreement. Because there is a contract, a break in the agreement can be defined. Without a written agreement, it can be very hard to pin point the failure. The misunderstanding could go the court. In court the judge will not have a contract to go off of and will have to have each side plead their case and explain to him/her why they feel wronged. It may be difficult to explain your position. It will take time away from work, and it could cost attorney fees. The consequences can be financially difficult, and it may cost someone the property. A situation that may be even more difficult is if you do not use the written form when a deal is between family members and there is a misunderstanding. The family tensions can uproot relatives, have people choosing sides, and cause unbelievable tensions. These feelings and consequences can all be avoided with a printable real estate contract.
Steps for Filling Out a free printable real estate purchase agreement PDF Form
The form is well organized. The steps are broken down with manageable fill in the blank spaces. The steps include:
- Naming the seller and buyer
- Identifying the property
- Clarify who pays for what fees and costs in escrow
- Financing terms and conditions
- Inspection terms and conditions
You can get a closing cost estimate from the escrow and title company. Some of the traditional closing costs are:
- Owner’s title policy
- Recording fees
- Escrow fees
- Courier fees
Buyers and sellers can work out the payment splits and other proration with the contract. One side or the other customarily pays some fees.