When an agreement is reached between a buyer and seller on a home's price, the parties
sign a purchase agreement (also known as a sales contract). Before signing, you should
make sure that the document correctly describes your agreement with the seller on such
important details as the sale price, method of payment, the time for your taking
possession, and what fixtures, appliances and personal property are to be conveyed with
the home.  Whether it
consists of several pages of big type or a few of fine print, the purchase agreement is a
legal document. In most areas, there are "boiler plate" forms that spell out
what each party agrees to do by certain dates and what happens if either side breaks the
contract.
The best time to become familiar with the contract is early on in the home buying
process. Ask your agent for a copy of the purchase agreement and then review it, keeping
in mind that it has the force of law. If you do not understand the document, seek the
advice of an attorney. If there is a dispute between buyer and seller, a court will hold
you to what the purchase agreement says, not what you thought it meant or what you thought
the REALTORŪ said it meant. There are several important points you need to be clear about.
What are the deadlines for loan application and obtaining financing? Can you back out of
the contract after the home inspection report? Are appliances included with the sale of
the house? When will the closing take place? If you comprehend the agreement and its
clauses, you will minimize the likelihood of misunderstandings and avoid a lot of stress.
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