The First Step

You’ve found the house of your dreams! Now it’s time to take the steps to make it yours! It’s time to make an offer to purchase the home for what you are willing to pay.  The seller can accept the offer or make a counter offer.  Once the buyer and seller reach an agreement, they typically sign a Louisiana Residential Agreement to Buy or Sell (the “Purchase Agreement”). 

What’s Included

In addition to the purchase price, deposit amount, and closing date, the Purchase Agreement spells out obligations of the buyer and seller. There will be deadlines set for the next couple of months until the closing.  Typically the buyer will have 7 to 10 days to begin the loan approval process if the sale is financed and 15 to 30 days for an inspection and due diligence period.  The seller will have to cure any deficiencies to make the title merchantable. They also have to allow access to the home for inspections.

In most cases, the default provisions in the event of default by the seller will allow for:

  • termination of the agreement
  • specific performance
  • termination of the agreement a penalty of 10% of the purchase price as stipulated damages. 

In the event of a default by the buyer, the seller has the option typically to declare the agreement null and void or to demand and sue for the following:

  • termination of the agreement
  • specific performance
  • termination of the agreement and a penalty of 10% of the purchase price as stipulated damages.