Bob Northern & Company
12540 Patterson Ave
Richmond, VA 23238
Tel: 804-708-9463 • Fax: 804-708-9467
Buying a Home: Step-By-Step
Forms needed to purchase Real Estate

What forms will I need to sign to buy my new home?

Forms Needed To Purchase Real Estate

Real Estate Purchase Agreement

The "Purchase Agreement" is what is normally referred to as the "real estate contract". It's usually a one to five page document. When a purchaser signs "the Purchase Agreement", they are signing an offer to purchase their new home. When the offer is presented to the seller, the seller can either "accept" the purchaser's proposal or "counter offer" back to the purchaser with a counter proposal. When both parties to the transaction agree on all terms, this is called "a meeting of the minds". This is when the offer or counter offer becomes a "contract".

Lead Based Paint Addendum

The "Lead Based Paint Addendum" is required on any home built prior to 1978. This form puts the purchaser on notice that there is/may be lead based paint in the home. Lead was placed in the paint of all houses built prior to 1978 to help eliminate mold and mildew that would attack the paint. We all grew up in lead based paint homes and survived.

The federal government's concern is to make sure children do not ingest lead based paint and end up with physical impairments. The way most small children are exposed to the paint is by placing their hands on a window sill and then putting the fine black powdery substance in their mouth. The purchasers have the right to conduct a search or assessment of the property for lead based paint. In addition the purchasers have the right to waive the assessment of the property. Probably 99.9% of the time the purchasers waive the right to inspect the home for lead. If the home was built before 1978, obviously it's going to be there.

Residential Property Disclaimer/Disclosure Statement

The Virginia Residential Property Disclosure Act requires the owner of certain residential real property is to be sold or leased with an option to buy, to furnish to the purchaser either (a) a RESIDENTIAL PROPERTY DISCLAIMER STATEMENT stating that the owner makes no representations or warranties as to the condition of the property, except as otherwise provided in the purchase contract, or (b) a RESIDENTIAL PROPERTY DISCLOSURE STATEMENT disclosing defects in the condition of the property actually known by the owner. Certain transfers of residential property are excluded from this requirement.

Basically, the disclaimer statement says the seller is making no representations to the condition of the property, but the purchaser can go ahead and have the house inspected by a home inspector to protect himself from unknown problems.

The disclosure statement is a more detailed history of the house. It goes into detail about problems that have been incurred with the home and when the problem(s) was corrected. To me, a disclosure statement is preferable over a disclaimer statement because at least the seller attempts to tell the purchaser where problems have been in the past.

Sadly, most attorneys advise their clients to sign the disclaimer statement. The reason they give is to limit the seller's vulnerability to a lawsuit in the event the seller either intentionally forgot or innocently overlooked to make note of a problem(s) that had been encountered.

Click her to continue to: Disclosure Of Brokerage RelationshipFirst Right Of Refusal