When you’re buying or selling a property, you’ll need to draft a real estate Contract that lays out all the terms of the deal. These contracts can be complex, but they help ensure that everyone has a clear understanding of what their obligations are. A good real estate contract will also include any events that need to happen before the sale can close, such as inspections and financing contingencies. In addition, the contract should state an anticipated closing date, and any disclaimers required by state law.
The process of building a real estate contract begins when one party submits an official offer to the other. The other party can choose to accept or reject the offer, or make a counteroffer with different terms. Once the parties agree on a final contract, it must be signed and dated by both parties in order to become legally binding. The parties can either write their own real estate contract or use a pre-printed form provided by a real estate office. The signatures must be notarized, if necessary. A notary is a person who is certified by the government to witness and verify the signatures on legal documents.
A real estate Contract can describe many different aspects of the property transaction, but some of the most important items are the purchase price, a deposit schedule, and the closing costs. The closing costs are the additional fees needed to transfer title to the new owner, and they can include escrow fees, recording fees, notary fees, and transfer taxes. The real estate contract should clearly state who is responsible for these fees.
Another common item in a real estate contract is the seller contribution toward the buyer’s closing costs. This is usually a specific amount of money that the seller agrees to contribute. A buyer can also ask to have these expenses included in the purchase price of the home.
The contract should contain contingencies that the buyer and seller need to meet in order to complete the sale. Contingencies can be based on anything from a property inspection to a title search. The contingencies should be clearly written and described, and the parties should negotiate a mutually acceptable time frame for meeting them. If a contingency is not met, the parties can cancel the contract and keep their earnest money deposit.
Although it may be tempting to waive the contingencies when a deal is very competitive, this can be a dangerous move. It is best to always include contingencies, and a reputable agent should be able to help their clients work through any challenges that arise. If you’re interested in learning more about the real estate market and investing, check out our online training course!