PA Real Estate - Purchase Contract Definitions and KeyTerms!  Understand important aspects of a purchase contract.

The PA purchase contract is typically 22 pages, which can be totally overwhelming for buyers who are unfamiliar with the terminology. We thought it might be helpful to provide some insight into key points that buyers should be familiar with prior to signing the dotted line.  

 

When we sit down to write the purchase contract we always spend time explaining key terms and we are sure to offer as much time as necessary for buyers to feel comfortable with thier understanding of the information.

 

Key Points of the PA Real Estate  purchase contract:

  • Name of buyers and sellers.  Make sure to fill in your name as you would like it to appear on the deed. If there is more than one buyer, list the names of all co-buyers.
  • Legal description of the property. Make sure the description is specific, particularly regarding the city/township, and includes any relevant zoning information, as well.
  • Down payment or earnest deposit information. Typically a home purchase agreement is sent with an earnest deposit (usually $1,000 or one percent of the purchase price). This will be held in an escrow account until closing. The checks are not sent to escrow until all parties have agreed on the contract terms and have signed off on any negotiations/changes to the contract.  
  • Purchase price. Both parties will negotiate the amount until an agreement is reached. The contract should list the final agreed price, as well as the exact terms of sale. Everyone will initial if chagnes are made to the origional offer and until signed its not an executed agreement.
  • Closing date. This is the date the deed will change hands. If you are the buyer, it is the date the home will officially become yours. If you are the seller, you will need to move out by this date - unless there was an addendum with specific terms.
  • Personal property included in the sale. This includes any appliances, furniture or other items included in the contract. Include a detailed description of all personal property items, including the make and model of any appliances so there is no chance of a mix up prior to closing.
  • Disclosure of defects and lead paint disclosure. Pennsylvania requires sellers to disclose any known defects about the property in writing including if the home has lead based paint. If the house was built before 1978, the seller is required to include a lead-based paint disclosure as part of the contract. Buyers will need to read and sign the seller disclosure forms to indicate they have reviewed the document.
  • Contingencies.If you are purchasing the home with a mortgage,  details of the financing will be included in the contract. This will include expected interest rate and mortgage terms and mortgage approval deadlines.
  • Inspections. An acceptable property inspection is typically part of the contract agreement. Inspections could include home inspection, radon, water/well., septic and pest. There are clauses which indicate who will be responsible for repairs and under what terms repairs can be requested and negotiated.  
  • Home warranty. A home warranty can be written into the contract which the sellers can pay for at close for the buyers. We have information on home warranties which can be provided at the time the purchase contract is drawn up.
  • Commission information. The contract should stipulate who pays the agent’s commission, and how much gets paid. Commissions are paid by sellers. There are NO fees for any buyer services for our representation unlike some brokerages who charge fees for processing paperwork.
  • Attorney Review clauses. Buyers/sellers have 5 days to review the contract with their attorney if they decide to do so. In PA one does not need to have an attorney to close.
  • Signature. Both the buyer and seller will need to sign the contract with all agreed upon changes in order for the contract to be executed. This is when the clock ticks on the deadlines.

 

 

Please feel free to contact us if you should have any questions about the purchase agreement or if you are ready to start looking for a home. We are always happy to answer your questions and to educate buyers on the buying process.

  

Contact Jill and Ron Fuhrer

Jill and Ron Fuhrer

484-241-5185

Prudential Patt White Real Estate