Items To Discuss With Sellers Prior to accepting a Purchase Agreement

You can use as a Purchase Agreement Review Checklist before your client signs:

Purchase Agreement Review Checklist

Go over these items with your client before they sign the purchase agreement.

General review

• Read the entire purchase agreement, even if it is a BOR form
• Confirm whether the form is a BOR form or another form
• Make sure you are comfortable with the agreement before presenting it for signature
• Read through the full offer carefully, understand it, then sign as appropriate
• Recommend that the buyer and seller have the purchase agreement reviewed by an attorney, and make clear that you are not an attorney

Parties and property

• Verify the named parties are accurate
• Confirm the property address is correct
• Confirm the legal description is correct

Price and money terms

• Check the purchase price
• Check the earnest money deposit amount and timing
• Confirm financing type
• Confirm preapproval letter or proof of funds is included, if applicable
• Make sure the financing type works for the property
• Check for any broker fees requiring your seller to pay the other broker
• Check for any additional costs in addendums or special provisions
• Review who pays title insurance
• Review tax prorations, especially if the contract came from an out-of-area agent, since they often default to taxes in arrears
• Check for any escrows, including occupancy, water, or other holdbacks
• Prepare or review the net sheet

Included and excluded items

• Check excluded items
• Check appliances included in the purchase agreement
• Make sure buyers understand that appliances are not included just because they appear in the MLS, unless they are specifically included in the purchase agreement

Addendums and conditions

• Review all addendums for costs
• Check for additional addendums
• Check for additional conditions
• Check for other special provisions
• Check for default-related fees, repair obligations, credits, or other hidden costs in addendums or conditions

Contingencies

• Check for inspection contingency
• Check for financing contingency
• Check for home sale contingency
• Check for any other contingencies
• Make sure all contingencies work with the client’s situation and timeline

Dates and possession

• Check for a reasonable settlement date
• Check the closing date in relation to any buy/sell contingency
• Check possession date
• Check occupancy terms and make sure they work for the client
• Check the time limit of the offer

Condo-specific review

• If the property is a condo, review assessments carefully
• Confirm whether assessments are paid in full
• Confirm whether any assessments are due, and if so, the due dates and who will pay them

Delivery and execution

• Review delivery terms and how the contract may be delivered
• Make sure the contract is properly signed and dated where required