It is common
for the buyer and seller to complete a "binder". This
is either an outline of the proposed sales contract between the
buyer and seller or the contract itself. It includes:
(1) the property address
(2) the names of the parties involved (the buyer and seller)
(3) the purchase price, and proposed financing
(4) what will happen if the buyer can't get a mortgage, or if
inspection reveals serious problems with the house
It is most often accompanied by a deposit from
the buyer - usually $500 or 1% of the purchase price of the house.
It is mostly used as a show of good faith between parties. Depending
on the wording of the binder, it may or may not give either party
the right to sue for breach of contract, or create a forfeiture
of deposit.
|
