Step 5: Tie The Home Up

Stake Your Claim

So, you found a home you would like to buy, you know the price and other terms of the purchase. Now is the time to stake your claim, before somebody else does. You accomplish that by putting an Earnest Money Deposit on a house to take it off the market. Until this is done, the house is available to anybody, no matter what prior verbal or e-mail communications you may have had before.

Important, Please Note: E-mail or verbal communications DO NOT constitute binding agreements, or commitments on your part or ours.

When you bring your Earnest Money Deposit to meet with the seller, you will receive a copy of the Earnest Money Deposit Agreement with the summary of all terms and conditions of your purchase, such as (if applicable): purchase price, rent-to-own length, purchase option money, cash downpayment, interest rate, monthly payments, escrow payments, the beginning and ending dates of the agreements, credits from rent towards purchase (if applicable) and any other terms specific to your purchase transaction.

Please note, exact terms of the Earnest Money Deposit agreement may vary depending on the home seller you're dealing with.

Complete the Due-Dilligence

The Earnest Money Deposit agreement shall allow you adequate time (typically about 1 week)  to complete necessary due-dilligence on the home you are buying, such as, Home Inspection, to make a final determination of whether or not you will go ahead with the purchase.

Acceptance

If your inspections have not shown anything of concern, and you accept the condition of the home, then you should be preparing for Closing.

Objections

If the inspections did uncover some problems, you have the following choices:

1. Terminate Contract

You can terminate the Earnest Money Agreement and receive a prompt and courteous refund of your Earnest Money.

Please note, to guarantee the refund of your money you MUST deliver to the seller a written statement of your intention to terminate within the inspection/cancellation period defined by the Earnest Money Agreement as your due-dilligence period.

2. Request Repairs

You may request that seller completed certain repairs for you to accept the house and proceed with the purchase.

Please note, seller is under no obligation to satisfy your request. However, a lot of sellers will try to satisfy reasonable requests of buyers.

- If the seller agrees to complete such repairs, or other services, the Earnest Money Agreement will be amended with the description of repairs, and services and will become binding.

- If you and the seller can't agree on repairs you can terminate ther Agreement and your Earnest Money should be refunded.

NOTE: It's a good idea to have all written contracts examined by a capable real estate attorney.

To learn about your next action please review Step #6:

Inspect The Home