buying your home

How Purchase Contracts Work

Once your offer is accepted, the next step is to set up and sign a purchase contract. This is a legal agreement between the buyer and the seller. It describes all the terms of the transaction. Depending on where you live, an attorney, a real estate agent, or a title company may help you negotiate and draft it. The purchase contract includes:

• The address and description of the property

• The sale price and the amounts of the loan, deposit, and down payment

• The buyer's and seller's names and their agents, brokers, and attorneys

• Information such as how long the buyer has to acquire financing, how soon the seller must respond to the offer, the date of closing, and the date when the buyer can actually move into the home