A purchase agreement defines the terms of a home sale in a clear contract. It includes the purchase price, closing date, and conditions required to complete the sale. Buyers must carefully review this document to ensure they understand and agree to all terms before signing.
The importance of title searches
A title search checks that the seller has the legal right to sell the home and that no one else has a claim on it. Without a clear title, buyers might run into legal problems later. Buying title insurance can help protect against these risks.
Mortgage loan obligations
First-time buyers should understand their mortgage loan details, including interest rates, length of the loan, and any fees for missed payments. Reviewing the loan estimate and closing disclosure can prevent surprises. Buyers should also check if their loan has extra fees for early payment or changing interest rates.
Home inspections and disclosures
California law requires sellers to disclose any known defects or issues with the home through a Transfer Disclosure Statement (TDS). Even with this requirement, buyers should still hire a home inspector to identify any hidden problems. If significant issues are found, buyers may negotiate with the seller for repairs, a price reduction, or credits at closing.
Zoning laws and property use
Zoning laws control how a property can be used. Before buying, buyers should check if the zoning rules match their plans, whether for living, renting, or running a business.
Closing costs and legal fees
Closing costs include fees for the lender, title insurance, home appraisal, and taxes. Buyers should ask for a full list of these costs before closing. A real estate lawyer can help explain legal fees and make sure all documents follow state laws.
Buying a home involves complex paperwork and large financial commitments. Buyers should carefully review all documents, ask questions when needed, and ensure they fully understand the terms before making a final decision.
