Looking to sell or buy a property is a tricky task that involves many crucial tasks like property inspections, REPC negotiations (Real Estate Purchase Contracts), closing charges, etc. Here, the focus is on the real estate purchase contract (REPC) which is the foundation for closing the deal. This contract is a legal document that safeguards the rights of both buyer and seller with some precise terms and conditions while engaging in a significant transaction. Below are a few key points about REPC and how can a Tittle company create a huge difference in making a successful deal.
A REPC is the Real Estate Purchase Contract between a buyer and seller of different types of property. This property is related only to these two parties (buyer and seller) and any other parties like title officer, agent, lender, etc are not associated with this document. It will include all the terms and conditions of a specific real estate transaction. This includes the buyer(s) and the seller(s), agent(s), purchasing costs, negotiations, additional aspects that come with your homes, exceptions, and other legal bonuses. Only the involved parties may take legal action to impose or break the contract. Few states consist of a fixed template for REPC so that sellers and buyers will be eased in completing the transactions without going through any legal complications. REPC will not transfer the title of the property but is only a contract that lists all the relative responsibilities of buyer and seller. The main motive of this document is to ensure that transactions can be completed without any hiccups.
Who requires a (REPC) Real Estate Purchase Agreement?
Every party that is selling or buying a property requires a real estate purchase agreement. But there will be changes in the listings present on the real estate transactions relying on the type of property or mode of representation. Usually, there are two options when selling a home:
Represented by a Real estate agent:
Being a home seller, if you are represented by a real estate agent, then they will be responsible for outlining the agreement and leading the deal to closure. This process involves real estate agents going through the lawyer to draft the real estate purchase agreement as real estate agents themselves cannot complete the legal authorizations.
For Sale by Owner (FSBO):
If the seller decides to waive the extra charges of a real estate agent, then the seller will be accountable directly for managing the real estate purchase agreement. This plan lets you enhance the revenue and returns by avoiding additional commissions. But in spite of this, it is important to guarantee that real estate purchase agreements are correct, legal, and genuine to the laws.
How is the Contract Preparation & Review Process carried?
There are several details that need to be drafted in the real estate purchase contract which is important for guaranteeing a successful deal. Some of these important details include details of the property, agreed final price, additional inclusions in the property, contract responsibilities, details, rights, or other aspects that must be fulfilled prior to completion of the sale, property condition, closure charges, and party responsible to pay them, potential date closure date, authorized signatures, conditions of possession, details of any other fixtures that are included or not included.
This contract document is also called a sale agreement, purchase, or sale contract depending on the parties i.e., the Seller or buyer is performing the contract. This document will also include precise dates that a buyer will apply for a mortgage and look for all the prerequisites for qualification and closing the deal of purchase. Due to this contract if there is any failure to complete the deal from the buyer, then they will be considered as a breach of contract. This will lead to losing the property or compulsory closure of the property even under unfavorable conditions. The moment both buyers and sellers sign the contract, it will mention that both of them have the legal right to complete the deal. As the buyer signs the purchase contract, they should give a fixed money deposit which is kept in escrow. This deposit is credited on the way to the final purchase price of the property mentioned in the contract.
The preparation and comprehensive analysis are carried out by expert title companies. They will ensure that this contract is in writing form, failing to which will make the agreement invalid. Taking the services of a title company is crucial in situations where the owner of the property is not taking the help of the agent and the title company agreement falls on the buyer. Even if you have gone through the process online or have some form of visible expertise with the transactions, it is important to take help from an expert title company for crafting the REPC.
How can Title Companies help?
The title company offers two major services that are important in safeguarding the seller and buyer in the transaction by carrying out a detailed title search on the property and offering title insurance. The title search involves detailed scrutiny of the public documents to check if there are any mistakes against it or if there are any existing joint owners who have missed signing the deal. If these issues are recognized before the closure of the deal, then they can be solved without any future surprises. Title companies offer title insurance which is mandatory if you are taking a mortgage but is highly beneficial for titleholders too. This title insurance safeguards the owner from any hidden defects in the title for only a one-time payment with the title company guarding you from any legal battles on the title in the future.
With such included key aspects, it is key to be associated with an expert title insurance agency in Utah, like Utah Title (Title Guarantee). They offer end-to-end services and answer all your queries about the process focussing on safeguarding your valuable investment.