Real Estate Resources and Advice For Growing Families

Examples Of Critical Home Purchase Documents To Scrutinize And Keep

Expect to handle multiple documents during the home purchase process. Most of these documents are critical, and you should keep them to protect your investment. Below are examples of these critical documents.

Realtors Agreement

Many real estate agents require you to sign an agreement before they start helping with your home purchase. The agreement is a contract that defines your professional relationship for a specified period. The contract should specify the agent's commission, the agent's responsibilities, your responsibilities, and the validity of the contract, among other things.

The agreement protects you and the agent. For example, a contract that gives the agent exclusive rights to handle your home purchase means the agent cannot lose their commission to another agent as long as the contract is valid. You also get to know what to expect from the agent.

Purchase Agreement

The real estate purchase agreement specifies the transaction terms between you and the home seller. The agreement contains the following:

You can use the agreement to confirm everything is as it should be during closing. For example, all the items the seller included in the sale should still be there at closing.

Home Inspection Report

A home inspection reveals the structural condition of a house at the term of the inspection. The home inspector will generate a report on the property's condition. For example, an inspection report should tell you if a house has experienced water damage in the recent past or needs a new roof soon. You decide whether and how to proceed with the sale once you get the report. 

Property Deed

The document confirms the transfer of ownership from the seller to you. The person whose name appears on the property deed is the legal owner of the house. Even if you do everything and make all the necessary payments, you do not own the house until its property deed is in your name.

Seller's Disclosures

You should know as much as possible about any property you intend to buy. For example, you should know:

The seller owes you compensation if they fail to include a required disclosure and the failure costs you money. For more information, contact a company like Prince of Wales Realty.