South Carolina Residential Purchase Agreement: Key Points You Need to Know
Buying a home can be both an exciting and overwhelming experience. From browsing various listings to attending open houses, there are several steps to take before finally settling on your dream home. However, among all these steps, the most crucial is signing a residential purchase agreement (RPA).
An RPA is a legally binding document that outlines the terms and conditions of the sale between the buyer and the seller. It is critical to go through the agreement with caution to avoid any legal complications. In this article, we will discuss the key points that you need to know before signing a South Carolina residential purchase agreement.
Terms of Purchase
This section outlines what the buyer is purchasing and what the seller is selling. Typically, it includes the property address, the sale price, personal property included in the sale, and any contingent conditions.
Deposits
The buyer will be required to deposit earnest money into an escrow account to show they are serious and committed to buying the property. The escrow deposit ensures that the seller will receive compensation if the buyer backs out of the deal without just cause.
Contingencies
Contingency clauses are conditions that must be met before the sale can be completed. South Carolina law requires that all contingency clauses must be in writing. Common contingencies include home inspections, appraisal, financing, and title search.
Closing Costs
This section outlines what each party will be responsible for in terms of closing costs. Typically, the buyer pays for fees relating to loan processing and origination, title insurance, and attorney fees. The seller pays for the cost of preparing the deed and any real estate commissions.
Closing Date
The closing date is the date when the buyer takes ownership of the property and title is transferred from the seller to the buyer. This section outlines the agreed-upon date and any provisions for extensions if events occur that cause a delay.
Warranties
If the seller provides any warranties, this section outlines the warranty terms. Common warranties include appliances, HVAC systems, and water heaters.
Conclusion
In conclusion, signing a South Carolina residential purchase agreement is a crucial step in the home buying process. As a buyer, it is important to carefully review and understand the terms and conditions outlined in the agreement. By doing so, you can avoid any legal complications and ensure a smooth transaction. If you have any questions, consult with a real estate attorney or a licensed real estate agent.