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Real Estate – Becoming Familiar with a real estate sales contract
Most real estate contracts can seem exceptionally overwhelming with their
complex real estate terms that you might not understand. This article helps
describe different terms in an easier way.
As is easily recognized, the obvious is stated, who is buying the property
from whom. It also lists the property address as well as the legal
description. This is for everyone's protection. There have been times when a
property was offered for sale at a particular address. The transaction took
place and the deal was closed. Later it was discovered the property sold was
actually adjacent to the one on the contract. This has actually happened
quite often with vacant land. By using the legal description on the real
estate sales contract there is no doubt which property is involved in the
transaction.
Along with any down payment, the purchase offer is also listed or earnest
money, the buyer may have put down. The terms made clear here as to when the
buyer will obtain the loan and how much the loan will be for. You will find
a date for closing in this area as well. The closing date is given as an
approximate. This is because circumstances may arise which could delay the
closing. This is taken into consideration. There could be a section about
the appraisal of the property, depending on how your contract reads.
You will get information on the sales agreement with reference to
inspections. This is because every buyer has the right to have the home
inspected before the contract is finalized. This is encouraged because there
could be hidden damage that no one knew about. Things like termites and
other infestations can be checked for with a quality inspection. Many times
the seller must have a termite inspection done before closing.
The real estate sales contract also includes a warning clause for the buyer.
This is the “As Is” terms the buyer is purchasing the property under. He or
she has the right to have the home inspected. Any thing which is not
addressed in the contract or during the inspection becomes an “as is” issue.
The seller can not be held responsible for any damages unless it was proven
the problem was known and not disclosed to the buyer. For instance, if the
basement floods every year and no one said anything, the seller can be held
responsible for taking care of the problem.
The real estate sales contract will list any options the buyer wishes to
add. For example, they can ask the seller leave the appliances or other
things. Additionally, they can ask the seller to pay certain closing costs
or hold a note for a set period of time. There may be other terms the buyer
may wish to add.
The seller has the right to refuse the contract completely, accept it as is,
or counter with an offer of his own. The seller can ask the purchase offer
listed to be higher, if it is not the asking price. This is where the
negotiations come into play. Not every real estate purchase contract is
accepted the first time it is submitted. Negotiating the deal is not
unusual. It is acceptable to ensure both parties are happy with the
agreement. This is why the real estate sales contract usually states at the
top that it is a real estate purchase agreement.
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