Chapter Twelve

      At this point,  you already have a legally-binding agreement in place and that is your original offer.   Everything in the signed offer will be going into your purchase and sale agreement, plus any repairs or items negotiated after the home inspection.   Now is the time to get in touch with a good real estate attorney.  If you are working with a buyer broker, he/she will be able to direct you toward an attorney. If you are working with a  seller agent, he/she will usually give you a list of three to choose from.

       If you  have a friend who is a practicing attorney and want to use him or her for your home purchase -- don't.  Exception:  your friend is a real estate attorney,  not a divorce lawyer, a civil rights attorney, a medical malpractice attorney, or, especially, a criminal attorney.  There is not enough paper here for me to explain what the wrong attorney can do to your home purchase.  

      The biggest problem with lawyers who do not consistently practice real estate is that your home purchase is not important to them.   Every other part of their practice takes a higher priority than a real estate deal that they stand to make $600 from.  As a result, they do not return phone calls to the other attorney, the broker or to you.  They typically feel that they can always just get an extension and, regardless of what they say, you cannot always count on getting an extension.  I have experienced a seller refusing to grant an extension because he was impatient with the attorney who did not get back to him in a timely fashion.   When this happens, you lose whatever leverage you may have had left with the seller and you can possibly lose your deposit.  

      I am a big advocate of using an attorney for your home purchase and am pleased to say that every one of my clients has used one because I insist on it.   Just be sure to work with someone who is going to do a good job for you and get things done on time.   If Perry Mason were available to you today, I would suggest that you pass him by because he would be too busy to pay attention to a residential real estate deal.  Instead, go with someone who does real estate transactions on a regular basis and will give your home purchase the timeliness and attention that it deserves. 

    As with so many dealings with professionals these days, your contact can all be done through telephone and fax, or, if you can take the time, you can meet in person.

    The purchase and sale agreement is drafted by the listing office or by the seller's attorney.  Therefore, there is very little in it to protect your interests.  You should have a copy of the agreement to be able to review it and discuss it with your attorney.   

    Aside from making any changes to the body of the agreement, your attorney will add a rider that is often several pages long.  This will usually be a standard rider that the attorney uses for all home buyer clients.  In addition to the rider, he/she will include wording that is specific to your home purchase.  Examples of these issues are:

  - All of the repairs that were negotiated after the home inspection,  stating the workmanship that is expected, plus the timeframe in which they should be made;

  -  If a new septic is being installed by the seller, specific details of the installation and time for completion;

  -  If there are outstanding tests such as radon or water, there should be an agreement with regard to a possible high radon reading (the seller should pay to install a radon mitigation system), or negative water results (an agreed upon plan for this outcome);

  -  Money that must be paid for a possible betterment fee to the town;

  -  If you are buying new construction, all of the building specifications (a multi-page document that is a detailed list of everything going into the house) should be part of the agreement;

  -  Anything else that is specific to your home purchase.

    If the seller is using an attorney, he and your attorney will work out the details of the agreement through faxing and telephone conversations.  When the final document is agreed upon and ready to sign, four copies are made.  All four copies need original signatures.  It is customary for the buyers to sign the documents first and then the sellers will sign all four.    

    At the time of the signing, you will be putting down an additional deposit which, with the initial binder, will usually be equal to 5% (five per cent) of the total price of the house. Write a personal check for this deposit and in the bottom left corner write, "Deposit on (address of the property.)"   Also, make a copy of the check for your records.  This money will be put into an escrow account through the listing office and stay there until your closing.

   The deposit is often held in an interest bearing account and the interest is often split between buyer and seller at closing.