Whether you are considering a real estate purchase agreement as an offer, or are drafting one to purchase property, there are several terms you should know. The real estate professionals at Sunwest Escrow are here to serve as a trusted resource for those who may be new to the process of buying or selling a home. We have developed a list of elements that will likely be included in a real estate purchase agreement. We believe that all parties should be familiar with these basic terms prior to engaging in negotiations.
- Appraisal: The estimated value of the property determined by a professional appraiser. This value may be different than the perceived value or asking price.
- Contingency: The conditions agreed upon by the seller and buyer which must be met in order for a sale to be finalized.
- Escrow: This third-party service holds the earnest money deposit and the title of the property until all conditions of the contract are met by the buyer and seller.
- Lien: A legal claim placed on a property because of a pre-existing debt.
Terms & Conditions You Should Know
- Sale of Current Home Contingency: A condition that states that the purchase of property will only take place upon the sale of the intended buyer’s current home.
- Clear Title Contingency: A condition which states that the property sale can only take place if the title is free and clear of all liens, which shows that the seller legally owns the property.
- Home Inspection Contingency: A condition which gives the buyer the opportunity to exit the sale if the home inspection highlights repair work that is costly or extensive.
- Seller Assist Contingency: A condition in which the seller agrees to pay for certain costs associated with the transaction, for instance, closing costs, escrow fees, or certain taxes.
- Home Appraisal Contingency: A condition which allows for a buyer to renegotiate the purchase price or terms if the property is appraised at an amount lower than the asking price.
To learn more about the terms, conditions, and details that are often included in real estate purchase agreements in Albuquerque, call Sunwest Escrow today.