Purchasing your first home is an exciting time. It can also be somewhat confusing and overwhelming, given all the components of the purchase process. The following is a brief overview of some of those key components and what they involve. For more detailed information if you are purchasing a home, contact a Stamford, CT real estate attorney.
The Binder
A binder is an offer to purchase. It is a formal written agreement between the buyer and the seller that holds the property until a formal offer to buy contract is drafted and signed by the parties. There is also a binder deposit – typically one percent of the purchase price – that the buyer will include with the binder.
Formal Contract
The next step in the process is for the formal contract of sale to be signed. Usually, it is the seller’s attorney who will draft this contract and then send it to the buyer’s contact for review. This contract will stipulate all the terms of the sale. When the contract is signed, the buyer will then pay a deposit with it, typically 10 percent of the purchase price.
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