Purchase Agreement

A Purchase Agreement is a legal document between a seller and a buyer that provides details, such as:

→the buyer’s name;

→offer price;

→down payment amount; and

→other data relevant to the sale

Let your agent know what your terms and conditions are, so they can draft the Purchase Agreement based on your instructions. Here is a list of information you should include:

1. Buyer’s legal name(s)

These should match the government-issued IDs you provide.

2. Offer price

You must discuss your offer price with your agent. Review comps provided along with interest level received of the subject property.

3. Down payment and loan amount, if financing

You must discuss your offer price with your agent. Review comps provided along with interest level received of the subject property.

4. Conditions and contingencies

A. Inspection (Yes/No)

If yes, please indicate how many days.
If no, please sign the waiver of inspection form (provided by agent).

B. Financing (Yes/No)

If yes, please indicate how many days. (We will work with the lender to know how many days they will need to provide a loan commitment letter).
If no, the terms will be included in the contract.

C. Appraisal (Yes/No)

If yes, please indicate how many days. (We will work with the lender to know how many days they will need to have appraisal inspection and report).
If no, we will include it in the contract.

5. Close of escrow

When do you want the escrow to close?

This happens when the new ownership begins. If financing, the real estate practice is to get information from the lender. Please inform your agent of any travel plans anytime during the escrow period and provide your travel schedule. Buyers are required to sign closing documents in front of a notary officer (in person).

6. Escrow/title company

You can choose which escrow or title company you want to work with or your agent can recommend some escrow companies to you. Sometimes, in a competitive market, you might be advised to work with the seller’s pre-selected escrow or title company.

7. Closing costs

Who pays for what?

We usually suggest buyers and sellers do what is customary in the city/county where subject property is located. Source: https://www.firstam.com/title/ca/santa-cruz/resources/who-pays-what-in-california.html

8. Arbitration

Please review the Purchase Agreement’s arbitration clause before signing/initialing the document.

9. Liquidated damages