Expert: Dick Dennis - 4/21/2007

Question
On the purchase agreement it asks us as a buyer what percent cash including earnest money we plan on paying and also what percent is to be financed.  First of all is that relavent information?  I consider how we come up with the money to be a private issue, (this is a small community).

This seller wants to stay in the house for another month.  So is the closing date considered the date the seller moves?  How do we protect ourselves if we make an offer and sign a purchase agreement. . . what if something happens in the meantime, flood, carpet get ruined by a spill, etc.

They also have indoor cats and dogs, is there anything special we should request in the purchase agreement?

Thank You for any help you can provide, this is my first house purchase.

Answer
Yes, Jennifer, I do understand this would be your first time buying a house. First of all, you should be working with a Realtor to help you understand your responsibilities and explain to you what the seller must do. Also, you apparently have not read your purchase agreement because some of what you asked is explained right there. DO NOT EVER SIGN ANY KIND OF DOCUMENT without reading everything. And if there is anything you do not understand, ASK! Your Realtor (or real estate attorney) will be glad to explain everything to you.

As for the down payment and what kind of loan you are getting, YOU MUST put down in the purchase agreement how you expect to buy the property. Unless you are paying all cash for the purchase, you may never buy a house!

As for the seller staying another month, make him pay for the privilege. Your Realtor (or attorney) will explain why. If nothing else, he could leave the house in a total mess if you do not protect yourself. Or, if you choose not to let the seller stay in the house after the closing, that is your prerogative.

What ever you do, DO NOT BUY A HOUSE WITHOUT A REALTOR OR REAL ESTATE ATTORNEY at your elbow. I do wish you well.

Dick Dennis