Danny's Blog

The Main Parts of a Real Estate Purchase Agreement Explained

Wednesday, September 02, 2015
Tags:   Miami Beach Waterfront Homes, miami beach luxury realtor

Many homebuyers find the process of purchasing a house to be an exciting but tedious event. While, searching for a home and attending open houses can be fun, the paperwork that comes with such an expensive purchase can be very overwhelming and confusing. For instance, the purchase agreement, a legal document that outlines the price and terms for the purchase of a house, can be confusing for both the seller and the buyer.

When going over and/or creating the purchasing agreement, it is best to ensure that the clauses are all correct and correlate properly with the terms from both the seller and buyer. Below are a few clauses that could be incorporated into a real estate purchase agreement.

As-Is Clause – Also considered a provision, the as-is clause is different depending on the local market. The purpose of this arrangement is to invalidate a buyer making claims that they did not know they were buying a property as is.

Arbitration Clause – While not always necessary, the arbitration clause is a great requirement to add to a purchaser’s agreement, as it will require the parties in a sale to fix any issues via an arbitration process, thus saving both participants from any additional court costs and fees.

Escalation Clause – Interestingly, this provision actually protects both the buyer and seller. An escalation clause, also known as an escalator, allows a homebuyer to set the amount that they would be willing to increase their original offer by, if the seller receives another offer.

Danny Hertzberg, an award-winning Miami Beach luxury realtor, brought this update to you. To learn more about the exclusive Miami Beach waterfront homes that are available, contact him at (305) 985.5934.

 
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