What A Real Estate Contract Really Says
|
|
If you are buying or selling a house, sooner or
later you will be faced with the task of
reading and signing A Real Estate Contract.
These seemingly confusing sheets of paper are actually
quite simple and necessary to outline the particulars
of the property and the transaction. By the time you
are finished with it, there may be many crossed out
parts, additions and initials to make it seem even
more scary! You should read it thoroughly and never
sign anything unless you know exactly what each item
means. Your real estate agent can help and it's not a
bad idea to get a lawyer the specializes in real
estate as well.
|
Most real estate contracts are pretty basic.
Although each state has a different legal form, their
job is to list out the property specifics, any
contingencies to the sale and the particulars of the
sale.
To describe the property, it will show the
property address and may have the type of dwelling.
It will show the selling price and list any warranties
included with the sale as well as any disclosures such
as the presence of lead paint or even a ghost! In
addition, it will list anything that is specifically
included or excluded with the house. When I sold my
house, we went back and forth over several items here
- usually this includes things like the stove, the
fridge, the drapes etc... As they seller you may not
want to include some things in the house - a nice
antique chandelier that you bought for the dining room
for example and you will need to list these
specifically else it is assumed that anything that is
attached will be sold with the house.
The real estate contract will also call out the
contingencies such as what inspections it has to pass
and who is expected to pay for what repairs.
Typically you will want a general home inspection as
well as well and septic if they have private services.
A separate terminate and pest inspection may be
performed as well. The contract should also specify
the time frame in which these inspections should take
place.
A real estate contract will also call out the terms
of the offer such as the offer amount and the down
payment (usually held in escrow at the real estate
agents office). It will state how long the seller has
to respond to either sign and accept or counter offer.
It will also specify how long the buyer has to secure
financing and the mortgage terms. And finally, it
will state a date and place for the closing and a date
for the buyers to take possession of the house.
As you can see, the real estate contract is nothing
to fear and is there to spell out the terms of the
sale to protect both buyer and seller.
| 
