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When buying a home, it’s important to protect your financial interests. This entails reviewing the real estate purchase agreement closely. Signing this legally binding contract commences the sale, and canceling it at any time can have costly consequences under real estate law; therefore, you must ensure it addresses all critical components of the transaction.

3 Elements to Look for in a Real Estate Purchase Agreement

1. Contingency Terms

Contingencies are stipulations the seller must meet for the sale to proceed. Under real estate law, a buyer may back out of a sale—typically without losing the earnest money deposit—if the seller fails to meet the terms of a valid contingency before the deadline has passed.

2. Possession Date

real estate lawThe possession date should be specified, even if it’s the same as the closing date. This is the date on which the buyer will receive the keys for the property. The possession date is negotiable and always depends on the seller and buyer’s circumstances.

3. Closing Costs 

When reviewing the purchase agreement, your real estate attorney will make sure every aspect of the transaction is completely transparent. This includes both party’s financial obligations regarding all negotiable expenses, like the earnest money deposit, escrow fee, and closing costs. While the seller is usually responsible for the closing costs under real estate law, the buyer may be asked to cover a portion of them.

 

If you’re planning on buying or selling a property, contact the Law Office of Dawn N. Murata LLLC in Lihue, Hawaii. For over 20 years, this firm has helped clients across Kauai navigate real estate transactions. Dawn N. Murata and her team of legal professionals strive to build a lasting relationship with each client. Learn more about her experience in real estate law online, and call (808) 245-4572 to schedule a consultation.

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