Thinking about writing an offer on a Northville home and not sure what the Michigan purchase agreement really commits you to? You are not alone. Whether you are relocating for work or buying your first luxury property, the contract’s contingencies, timelines, and money at risk shape your leverage and peace of mind. In this guide, you will learn how Michigan purchase agreements work, what to negotiate, and the local details that matter in Northville Township. Let’s dive in.
What a Michigan purchase agreement does
The purchase agreement is the roadmap for your deal. It sets price, deposits, deadlines, and what happens if either party cannot perform. In Michigan, many agents use standardized forms from Michigan REALTORS, then tailor terms with addenda to fit the property and your needs.
Standard forms and addenda
Standardized forms help everyone speak the same language. They include default timelines, remedies, and clauses that allocate risk. Addenda often address financing, inspections, homeowner association rules, and any unique property features. Clear addenda reduce confusion during negotiation and closing.
Key sections you will see
- Parties and the property’s legal description.
- Price, earnest money amount, and how you will pay.
- Financing terms and your loan commitment deadline.
- Contingencies: inspection, appraisal, financing, title, HOA, and municipal items.
- Closing date and prorations for taxes, utilities, and dues.
- What stays with the home vs. what the seller will remove.
- Seller disclosures and required federal notices for older homes.
- Remedies if either party defaults.
- Who holds the earnest money and how it can be released.
Contingencies that protect you
Contingencies are your safety valves. They let you cancel or renegotiate if certain conditions are not met. The right mix depends on your comfort with risk, your financing strength, and the property type.
Inspection contingency
An inspection contingency gives you a set period to investigate the home and request repairs or credits. In the luxury segment, plan for specialists when needed, such as structural engineers, pool and spa technicians, HVAC experts, arborists, or smart-home pros. Define remedies in writing, including whether the seller must repair, provide a credit, or allow you to terminate.
Financing and appraisal
A financing contingency protects you if your lender does not approve your loan on time. If you are well qualified, consider a pre-underwritten loan to strengthen your position while keeping a reasonable contingency. Pair this with an appraisal contingency, which covers you if the appraised value comes in below the purchase price. You can negotiate a price change, cover a defined gap in cash, or exit if the contract allows.
Title and HOA review
A title contingency ensures you receive marketable title. You can object to unacceptable liens, easements, or restrictions. Remedies may include a seller cure, an escrow holdback, or the right to terminate. If buying in an HOA or condo, keep a document review contingency so you can read CC&Rs, budgets, reserve studies, meeting minutes, and any special assessments before you are locked in.
Well, septic, and municipal checks
Some Northville-area properties may have private well or septic systems. Include testing and certification in your offer if applicable. For environmental and water resources guidance statewide, consult Michigan EGLE and fold findings into your due diligence period.
Timelines and notices you cannot miss
Deadlines in Michigan contracts are taken seriously. If you miss an inspection or financing deadline, you may waive that protection without realizing it. Many sellers ask for a “time is of the essence” clause, which raises the stakes for on-time performance.
Key timeline items to track:
- Offer expiration and acceptance.
- Earnest money deposit due date and who will hold it.
- Inspection start and end dates, and the final day to request repairs or cancel.
- Loan commitment and appraisal deadlines.
- Title commitment date and any objection windows.
- Closing date and location, with any agreed extension options.
- Delivery deadlines for HOA documents and seller disclosures.
Always give termination or objection notices in the method the contract requires. Keep written proof of delivery for every notice you send.
Earnest money: how it works
Earnest money shows the seller you are serious. It is credited to your purchase price at closing and becomes the focus if there is a dispute. The contract should name the escrow holder. It is common for a listing broker, buyer’s broker, or title company to hold the funds.
Check these details before you sign:
- The amount and form of your deposit.
- The deadline for delivering funds and the holding account.
- When the money is refundable vs. forfeited. It is usually refundable if you cancel under a valid contingency on time, and at risk if you default without that right.
- How disputes are handled. Many forms require mutual written instructions for release. Without agreement, the funds may remain in escrow until the parties resolve the matter.
For wire transfers, verify instructions by phone using a known number to reduce fraud risk. A reputable title company is standard for high-value transactions in Wayne County.
Disclosures and inspections in Michigan
Seller disclosure statement
Michigan sellers must complete a written disclosure statement about known material defects and conditions. Ask to receive a dated copy as part of your contract package. The Michigan seller disclosure law is state statute, and you can review relevant laws through the Michigan Legislature. For homes built before 1978, federal rules require a lead-based paint disclosure and delivery of the government pamphlet.
Specialized due diligence for luxury homes
High-end properties often include complex systems and amenities. Add inspections for structural components, building envelope, elevators, pools, landscape drainage, home automation, and security systems as needed. Request maintenance records, permits for recent renovations, and any contractor warranties. If a home is near older districts, ask your agent to verify any design controls or historic overlays with the local planning office.
HOA and condo documents
If the property is in an association, review CC&Rs, budgets, reserve studies, special assessment history, and meeting minutes. Confirm any rental rules, architectural guidelines, or insurance requirements. Build a realistic review period into your offer so you can evaluate the documents without rushing.
Northville and Wayne County nuances
Northville Township and the City of Northville are separate municipalities. Confirm which jurisdiction a property falls within because services, zoning, and tax rates can differ. Start at the Northville Township official site to check departments and resources.
Property taxes are prorated at closing, and local millage rates can vary by township and school district. For deed recording practices and fee schedules, the Wayne County Register of Deeds is the authority. Before closing, verify that permits were obtained for additions, pools, or outbuildings through the Township’s Building Department. Also confirm whether the home is on public water and sewer or private well and septic, then structure your contingencies accordingly.
Smart negotiation for relocating executives
Pre-offer preparation
- Secure a strong pre-approval and, if possible, a lender pre-commitment after full file review.
- Engage a buyer’s agent experienced with Northville luxury transactions and relocation timelines.
- For atypical or unique estates, consider an independent appraisal or price opinion before you write.
Offer strategies
- Set earnest money at a level that signals strength while preserving your contingency rights.
- Define a realistic inspection period and spell out remedies, including repair credits or holdbacks.
- Use appraisal gap language only if you are comfortable covering a defined shortfall.
- Consider a carefully drafted escalation clause in multiple-offer situations with a clear cap.
- If the seller needs time after closing, negotiate a rent-back with defined term, rent, and insurance requirements.
- List important fixtures and personal property to avoid post-closing disputes.
Risk management
- For high-value or unusual properties, consider attorney review of your documents.
- Clarify dispute resolution methods for earnest money or contract breaches if desired.
- Request seller warranties or escrow holdbacks for items identified in inspections.
Relocation logistics
- Build in time for lender underwriting and appraisal scheduling.
- If you need access before closing, discuss a temporary occupancy agreement with clear insurance and indemnity terms.
- Coordinate early with your lender, title company, and insurer to prevent last-minute delays.
What to bring to your first offer meeting
- A current pre-approval or pre-commitment letter.
- Proof of funds for your earnest money and any appraisal gap you plan to cover.
- A prioritized list of must-have contingencies and inspection specialists.
- Your preferred closing date, travel schedule, and any timing constraints.
- Contact info for your lender, title preference, and insurance agent.
- A short list of HOA or condo questions, if applicable.
The Proper difference for Northville buyers
You deserve an advisor who blends precision with discretion. Our team brings valuation fluency, engineering-minded attention to detail, and hands-on coordination with trusted local vendors. If you want clear terms, clean execution, and a contract that protects your interests in Northville and the western suburbs, let’s talk. Connect with Proper Real Estate to Request a Private Consultation & Valuation.
FAQs
How much earnest money should Northville buyers expect?
- Amounts vary by price point and market conditions. Luxury buyers often use larger deposits to show strength, but you should size your deposit to match contingency protections and your risk tolerance.
What happens if a Michigan appraisal comes in low?
- Your options usually include renegotiating price, covering a defined gap in cash, contesting with better comps, or terminating if you kept an appraisal contingency.
Can I cancel after inspections in Michigan contracts?
- Yes, if your contract includes an inspection contingency and you give notice within the deadline using the required method. Late notices can waive your right to terminate.
Who holds earnest money in Wayne County deals?
- The contract names the escrow holder, often the listing broker, buyer’s broker, or a title company. Most forms require mutual written instructions to release funds if there is a dispute.
Where do I verify permits for a Northville property?
- Start with the Northville Township Building Department via the Township’s official website, and confirm details with your title company and agent before closing.
