7 Terms to Watch for in a Purchase
Contract
1. The closing date. See if the date the buyer
wants to take title is reasonable for you.
2. Date of possession. See if the date the
buyer wants to move in is reasonable for you.
3. The earnest money. Look for the largest
earnest-money deposit possible; since it is
forfeited if the buyer backs out, a large deposit
is usually a good indication of a sincere buyer.
4. Fixtures and personal property. Check the
list of items that the buyer expects to remain
with the property and be sure it’s acceptable.
5. Repairs. Determine what the requested repairs
will cost and whether you’re willing to
do the work or would rather lower the price
by that amount.
6. Contingencies. See what other factors the
buyer wants met before the contract is final—inspections,
selling a home, obtaining a mortgage, review
of the contract by an attorney. Set time limits
on contingencies so that they won’t drag
on and keep your sale from becoming final.
7. The contract expiration date. See how long
you have to make a decision on the offer.
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