When Do Contracts Get Signed When Buying a House

When purchasing a house, there are several steps that need to be followed before signing the final contract. One of the most important steps is the signing of the purchase agreement, which ensures that both the buyer and the seller are on the same page regarding the sale. In this article, we’ll take a closer look at when contracts get signed when buying a house.

The first step in the process is making an offer. Once the buyer has found a property they are interested in, they will typically make an offer through their real estate agent. The offer will include the proposed purchase price, any contingencies, and the proposed closing date. The seller will then have the option to accept, reject, or counter the offer. If the seller accepts the offer, the purchase agreement will be drawn up and sent to both parties.

The purchase agreement is a legally binding contract between the buyer and the seller. It outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies. The contingencies can include things like home inspections, financing, and appraisal. If the contingencies are not met, the contract can be terminated without any penalty to either party.

Once the purchase agreement is signed by both parties, the buyer will typically put down a deposit, known as earnest money. This deposit is usually around 1-2% of the purchase price and shows the seller that the buyer is serious about the purchase. The earnest money will be held in an escrow account until the closing.

After the purchase agreement is signed, the buyer will typically have a certain amount of time to complete any contingencies. For example, if a home inspection is included in the contingencies, the buyer will have a set amount of time to complete the inspection and negotiate any repairs with the seller.

Once the contingencies are completed, the buyer and seller will prepare for the closing. This is the final step in the process, and it’s when the actual sale takes place. At the closing, both parties will sign the final contract and transfer ownership of the property. The buyer will also pay the remaining balance of the purchase price and any closing costs.

In conclusion, contracts get signed when buying a house after the purchase agreement has been drawn up and agreed upon by both the buyer and the seller. Once the purchase agreement is signed, the buyer will typically have a certain amount of time to complete any contingencies before moving forward with the closing. The closing is the final step in the process, where both parties sign the final contract and transfer ownership of the property.