As a home buyer, you will be signing many documents. The purchase contract outlines the basic terms and conditions of your agreement to buy the property. It includes the sale price, property description, deposit amount, mortgage financing, and any contingencies. Your Realtor will help walk you through the negotiation process.
After the initial offer, you may receive 5B4a counter offer. It will change some of the price and/or terms of your original offer. Below are checklists of the major items included in the contract.
Major items in sales contract
- Sale price
- Property address and APN (tax #)
- Amount of initial deposit
- Terms of mortgage financing
- Closing date
- Contigencies and conditions
- Transfer and recording of deed
- List of fixtures remaining in home
- Repairs required of the seller, if any
- Real estate agent representation
- Details of escrow transaction
Included in your contract are items you will have to pay for. Some items you will pay in cash (as a money order or cashier's check from your bank), some items may be paid through your mortgage loan, and some items the seller may pay on your behalf (depending upon what you agreed to in your purchase contract).
You can expect to spend about 3-6% of the purchase price on closing costs. Below are the major items you pay pay at the close of escrow:
Major closing costs
- Loan underwriting fees
- Credit report fees
- Appraisal fee
- Inspection fees (building inspection, other inspections)
- Insurance premiums
- Pro-rated interest on loan
- Pro-rated county property taxes
- Escrow reserves (refundable pad)
- Notary & Legal services
- Escrow services
- Recording services and 5B4Title-related services
- Real estate agent commissions (usually paid by the seller)
Remember to have a great attorney to help you review your contract before signing. And have your attorney review your loan documents and help explain them to you before signing. If you can't afford attorney fees, consider enrolling in a pre-paid legal plan membership for a low cost lawyer service.
R.P. Brown serves the California Central Coast, helping home buyers and sellers to realize their dreams of homeownership.
Experience Includes:
Real Estate Broker; licensed since 1988
Member of local Board of Realtors, CAR, and NAR
Notary Public; commissioned since 1998
Lifelong resident of San Luis Obispo county (4th Generation local family)
A.A. Degrees in Real Estate and Small Business Management
Technical Writing Certificate
Business Major at Cal Poly State University
Established in our community -- connections with many residents & merchants
Past President of 2 local non-profit organizations
Continue to volunteer for local organizations
Previous business owner
Qualifications Include:
Experienced in all phases of Real Estate services, including
First Time Buyers
Buyer's Broker
Foreclosures & Bankruptcy Cases
Mortgage Lending
Prop16CDerty Management
Motivated -- Work hard for you!
Ethical and Trustworthy
MLS access by internet
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