Here are some key points on what to look for when signing a contract to buy a new home:

  • Make sure the contract includes a provision allowing for a refund of your deposit if you are unable to obtain financing -- within a reasonable specified time -- or if the seller or builder fails to perform his or her part of the contract.

  • If possible, make your deposit and down payment into an escrow account, rather than directly to the seller.

  • Have a real estate agent or attorney go over the agreement before signing.

  • Make sure the sales price is specified in the contract.

  • Ensure the contract requires the seller to transfer the property to you on or before a certain date. The contract should also specify your right to withdraw and get your deposit back if the property is not transferred on time.

    Source: Cal-Lending.com


    Advertisement