Here are some key terms to look for in a Purchase Contract
- The closing date. The date the buyer wants to take title.
- Date of possession. The date the buyer wants to move in.
- The earnest money. A deposit that is forfeited if the buyer backs out without a valid reason; a large deposit is usually a good indication of a sincere buyer.
- Contingencies. Conditions that allow the buyer or seller to back out of the contract, such as inspections, selling an existing home, obtaining a mortgage, review of the contract by an attorney. Time limits on contingencies ensure that they won’t drag on and keep your sale from becoming final.
- The contract expiration date. How long you have to make a decision on the offer.
