The West Michigan Regional Purchase Agreement: What You Need to Know
If you`re in the process of buying or selling real estate in West Michigan, chances are you`ll come across the Regional Purchase Agreement (RPA). This document is a legal agreement between the buyer and seller that outlines the terms and conditions of the sale. It`s an important document that should be carefully reviewed by both parties before it`s signed.
The RPA is a standard form created by the West Michigan Lakeshore Association of Realtors (WMLAR) and is used by real estate agents throughout the region. The agreement covers a wide range of topics, including the purchase price, financing, contingencies, inspections, and closing date. Here are some key things to keep in mind when reviewing the RPA:
Purchase Price
One of the first things to consider when reviewing the RPA is the purchase price. This is the amount of money the buyer agrees to pay for the property. The RPA will specify whether the purchase price is cash, a mortgage, or a combination of both. It will also outline any earnest money deposits that need to be made by the buyer.
Financing
If the buyer is obtaining a mortgage to finance the purchase, the RPA will specify the type of loan, the interest rate, and the term of the loan. It will also specify the amount of money the buyer is putting down and any conditions that need to be met in order for the loan to be approved.
Contingencies
The RPA will outline any contingencies that need to be met before the sale can close. These may include inspections, appraisals, or the sale of the buyer`s current home. If any of these contingencies are not met, the sale may be canceled.
Inspections
The RPA will specify what type of inspections will be conducted and who will pay for them. The buyer typically pays for the inspections, but the seller may be responsible for any repairs that need to be made.
Closing Date
The RPA will specify the date on which the sale will close. This is the date on which the buyer will take possession of the property and the seller will receive payment. It`s important to note that the closing date may be delayed if any of the contingencies are not met.
In summary, the West Michigan Regional Purchase Agreement is a vital document in the real estate sale process. It outlines the specific terms and conditions of the sale and should be carefully reviewed by both parties before it`s signed. By understanding the key elements of the RPA, buyers and sellers can ensure a smooth and successful transaction.