Title Insurance Company: Information about your title company will be included in the P&S document. As the buyer, you always have the right to select a title company, though it may be local custom for the seller to choose. You should talk to your agent or attorney if you have any questions about choosing a title company

Title Condition: The purchase and sale agreement will include a line that the seller will provide a clear or marketable title of ownership to the buyer.

Contingencies: Contingencies are conditions that must be met in order for the home purchase to be completed. If one of these contingencies are not met, the sale may be canceled by the buyer or seller. Here are some examples of common contingencies — but be careful — never assume that these contingencies exist in your contract. Always check with your agent or attorney.

Inspection Contingency: This contingency allows the buyer to have the home inspected before going ahead with the purchase. If the inspection turns up a problem with the home, the buyer can renegotiate with the seller, who may repair or offer a credit for the problem. If the problem is severe, the buyer can back out of the purchase without losing the earnest money deposit.

Financing Contingency: This contingency requires the buyer to get approved for a mortgage before making the purchase. If the buyer is unable to get a commitment from a lender, he or she may be able to back out of the deal.

Title Contingency: This contingency gives the buyer the right to review the home’s title for problems or conflicting claims of ownership. If the title review turns up a problem, the buyer can back out of the deal.

Appraisal Contingency: This contingency allows the buyer to back out of the deal if the home’s appraisal reveals that the home is not worth as much as the buyer intended to offer on it.

Home Sale Contingency: This contingency gives the buyer the right to back out of the deal if she is unable to sell her current home.

Addendums: An addendum is any additional request from the buyer to the seller that is not included in the actual purchase and sale agreement. An examples is that the seller include appliances or furniture not originally included in the home’s sale price.

The buyer’s agent is responsible for preparing the purchase and sale agreement. Unless other wise according to state and local laws.

Closing Date: On your closing date, the purchase will be completed; the transfer of property will be recorded with the local government, and the seller will receive the money for their home. Usually, you’ll sign all the necessary paperwork a day or two before your closing date. Your closing date may change, however, due to unforeseen events, such as your financial paperwork taking longer than expected.

Have questions for a real estate agent? Use the form below.