A sales and purchase agreement (SPA) is a contract that binds the buyer and seller to the agreed upon price, terms and benefits in a purchase or sale, intended to benefit the interests of both parties. An SPA provides how the transaction will proceed and what is included and excluded in the transaction. Also, SPAs are like records that hold detailed information about the buyer and seller, deposits made, any parts of the agreement which have already been met, and when the final sale should take place.
Escrow
Escrow is when a neutral third party holds the funds in an account until all escrow requirements are met or until one party backs out of the agreement due to certain terms. This allows for both parties to not have to worry about trusting each other with these funds before the escrow agreement has been completed.
Title Search and Obtain Title Insurance
Title insurance covers the loss of ownership interest in a property because of legal defects. This provides a safety net so when you buy the property, you’re the sole owner of the property.
Why Hire an Attorney?
Our attorneys at G&R Law can give legal opinions and advice for closing documents and allow you to understand them. We can also review your paperwork to make sure it is flawless.
Get Pre-Approved for a Mortgage
This is not necessary, but it can speed up the closing process by giving the signals to the seller that your financial backing is in check. Also, this can give you better bargaining power with the seller and allow you to secure an interest rate.
Negotiate Closing Costs
Some costs on closing statements can be negotiated or eliminated entirely while others are standard. Our office can help review and try and eliminate fees which are often times included.
Home Inspection
This is not required, yet is highly recommended. If there is a problem with the home, you can back out of the deal or ask the seller to fix the problem as long as your offer included a home-inspection contingency.
Pest Inspection
During this, a specialist would have to inspect the home for termites or carpenter ants. If either of these wood-destroying pests is found, the mortgage company will require that it be fixed before you close.
Renegotiate the Offer
If any repairs are required even after the offer has been accepted, you can try to renegotiate the purchase price or have the seller pay for any repairs.
Lock Interest Rate
If not done yet, you should lock an interest rate that works for you. Your lender or certain websites can help you find when the rates are lowest.
Remove Contingencies
If not passively approved, you must approve the following contingencies before the deal can close:
- Obtaining financing at an interest rate not to exceed a certain percent that you can afford
- The home inspection not revealing any major problems with the home
- The seller fully disclosing any known problems with the home
- The pest inspection not revealing any major infestations or damage to the home
- The seller completing any agreed-upon repairs
Funding Escrow
When signing the SPA, you most likely made a deposit called earnest money, allowing the seller to know you are seriously interested in the home, leading the seller to taking the property off the market. This deposit is applied to your down payment, so any leftover payment and closing costs must be paid at this time.
Walkthrough and Signing
Lastly, before signing, you should go over everything about the property to make sure all is well and in place. Afterwards, you will have to sign the paperwork, which it is very important to read each page carefully since the fine print can have an impact on your finances for the years to come.
Contact Our Coral Gables Professional Attorneys
To discuss your case with one of our experienced lawyers in an initial consultation, call us toll free at 305-461-4880 or contact us online.
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