Brokers and Commissions: The purchase agreement will also stipulate the real estate brokers involved in the transaction, who they are representing, and the commissions earned.Ĥ. If there is no loan contingency, the appraisal contingency is normally also waived by the buyer within the 21 day contingency period.ģ. This is important, because if the appraisal does not support the purchase price, the lender may require a larger down payment by the buyer. The standard loan contingency period is 21 days. In addition, the buyer may require an additional loan appraisal contingency, that states that the appraisal prepared by the lender shall be at least equal to the purchase price. Buyer Loan Contingency: The buyer may require a separate loan contingency that stays in effect until the close of escrow. are often split among the buyer and seller in a manner typical for the city of the sale, however the allocation of these fees between the buyer and seller should be clearly stipulated in the contract.ģ. Stipulate What Closing Costs to be Paid by Buyer or Seller: Certain closing costs such as City and County Transfer Taxes, HOA transfer fees, Escrow Fees, etc. The length of the escrow period shall also be stipulated.Ģ. If the buyer wants to make it clear the terms of the new loan required to close escrow, the interest rate, term, etc. Purchase Price, Financing, and Deposits: The purchase price, the amount of the deposit (usually 1.5 to 3% of the purchase price) and if the deposit is to be made in increments during the contingency period, the amount of the new loan, any secondary financing required, including whether the buyer is requesting that the seller provide financing, and the amount to be funded by the buyer at the close of escrow are all included in the purchase contract. Some of the important items which must be included in the contract are the following:ġ. The initial offer that a buyer makes to acquire a property is made on the RPA-CA standard form Residential Purchase Contract.
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