During the homebuying process, you will be required to submit what is known as a real estate purchase agreement to the seller. This agreement will be between you and the builder if the home you are buying is a new construction. The purpose of this agreement is a legal document between the buyer and the seller and will outline certain to aspects of the sale, including the purchase price.
The real estate purchase agreement also indicates specifics of the sale such as the time frame for the sale and any conditions or contingencies relating to the sale, and other things you should be aware of.
As with any other legal contract, a real estate contract may be formed by one party making an offer and another party accepting the offer. Typically, the party making the offer prepares a written real estate contract, signs it, and transmits it to the other party who would accept the offer by signing the contract. At this point, the other party may accept the offer, reject it or make a counteroffer. To be enforceable, a real estate contract must possess original signatures by the parties and any alterations to the contract must be initialed by all the parties involved.
Because these agreements can be confusing, it is always a good idea to work with a real estate professional when dealing with legal forms before signing if you have any questions or are confused with any of the terms.