The purchase of a house must always be recorded in writing. This is done in a contract that you and the previous owner of the house sign. That contract is referred to as the purchase agreement, deed of purchase or provisional purchase contract. For the real estate for sale in Long Beach CA these are the essentials.
Don’t be fooled by the name ‘provisional purchase contract’
First of all, don’t be fooled by the term for the time being. A provisional purchase contract is binding. You have 3 days to change your mind after signing. In addition, resolutive conditions may be included in your purchase contract. For example, the purchase will not go ahead if you do not get the financing on time. Did you know that you can influence what will be included in the purchase contract? If you are going to bid you can, for example, make a bid on condition that the financing is settled within 6 weeks. Useful.
Scrambling back costs you a fortune
If, after the 3 legal days of reflection, you still want to cancel the provisional purchase contract, and you cannot claim one of the resolutive conditions, you must pay 10% of the selling price. Sin! You can also agree with the selling party that you may think longer. Make sure that it is stated in the purchase contract. Tip! Always plan a free mortgage interview with a mortgage advisor before the end of your reflection period. The adviser can already give you a good estimate of your options. If it seems impossible to complete the financing, you can still indicate during the cooling-off period that the purchase is canceled. With me you can usually go today or tomorrow for a free mortgage interview! Make an appointment for free .
Make sure that the purchase only continues if you have enough money
The chicken and the egg: you can only buy a house with a mortgage, but you will only get a mortgage if you have a purchase contract. Therefore make sure that the contract states that you only buy the house if you get your finances around. This resolutive condition is called ‘subject to financing’ and is included in almost all purchase contracts. Make sure you take enough time: you sometimes need a few months to get the financing.
Before you start bidding you may want to know how much you can borrow. Calculate if you can borrow enough with my smart tool.
Pay attention to hidden defects
At the viewing you fell in love with your new home. But what you can’t see is whether it leaks when it rains, and whether the pipes rust. That will cost you money to fix. Make sure you have a structural inspection and have it included in your contract that you only buy the house if it does not reveal any hidden defects. That too is a resolutive condition. There are many more, by the way.
Don’t be fooled by the resolutive conditions
The resolutive conditions are not a license to be able to easily cancel your contract even after 3 days. You must be able to prove that the building inspection is negative, or that you have not been able to get a mortgage from at least two mortgage providers.