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The West Michigan Regional Purchase Agreement (RPA) of 2019: What You Need to Know
If you are looking to buy or sell a property in West Michigan, it`s important to understand the terms of the purchase agreement. The West Michigan RPA of 2019 is a standardized agreement used by most real estate agents and brokers in the region. In this article, we will discuss the key features of the agreement and how it affects both buyers and sellers.
Firstly, it`s essential to understand that the RPA is a legally binding contract. Once both parties have signed the agreement, they are obligated to abide by its terms and conditions. This includes the purchase price, the closing date, and any contingencies that need to be met before the sale can go through.
One of the most significant changes to the 2019 West Michigan RPA is the financing contingency. This contingency allows the buyer to back out of the sale if they are unable to secure financing for the property. It`s crucial to note that buyers must make a good faith effort to obtain financing and provide proof of their efforts in writing. This contingency also protects the seller from buyers who may make a lowball offer with no intention of following through on the sale.
Another important aspect of the RPA is the inspection contingency. This contingency allows the buyer to have the property inspected by a professional inspector. If the inspection reveals any issues that the buyer is not willing to accept, they can back out of the sale or negotiate repairs with the seller. It`s important to note that the inspection must occur within a specified timeframe, typically within 10 to 14 days of the signed agreement.
The RPA also addresses several other issues, including prorations, title insurance, and closing costs. These are all significant expenses that can add up quickly, so it`s important to read and fully understand these sections of the agreement before signing.
In conclusion, the West Michigan Regional Purchase Agreement of 2019 is a critical document for anyone buying or selling a property in the region. It outlines the terms and conditions of the sale and can help protect both parties from potential disputes or legal issues. As a buyer or seller, it`s essential to carefully review the agreement and seek the advice of a qualified real estate professional if you have any questions or concerns.
