If you are planning to buy or sell a home, you should make sure that you have a real estate contract in place. A real estate contract will include details such as the closing date, purchase price, and the terms of payment. It will also contain any contingencies or requirements that have been included in the deal.
A real estate contract is a legal document that should be drafted by an attorney. In some cases, a real estate agent can sign the contract on behalf of the buyer or seller. However, in most states, an agent is not allowed to draft the contract from scratch. An agent can fill in the blanks, however, and this is a significant factor in determining whether or not a deal will be a success.
The best way to make a real estate deal is to make sure that all of the details are included in the real estate contract. The contract should also clearly outline the rules and requirements of the transaction. Also, the contract should include a timetable for the inspection process and the closing date. This will help speed up the process and ensure that all parties are on the same page.
There are many other key details to be covered in the real estate contract, however. Among them is the existence of a financing clause. The financing clause allows the buyer to back out of the transaction if the financing falls through.
The real estate contract should also contain a home inspection contingency. Having an inspector review the home before the sale is complete helps to protect both parties from being taken advantage of. These are important details because they allow both parties to have a clear understanding of what to expect from the transaction.
Another feature is the ability for the buyer to get back the money he or she spent in a down payment or earnest money deposit. These contingencies give the buyer an opportunity to back out of the deal for no reason at all.
Another feature is the ability to have a third party record the signatures of both parties. This is useful if the second party cannot sign the contract. You can also use a power of attorney to vouch for the person signing the contract, or to sign for a disabled or elderly individual.
The biggest advantage to having a real estate contract is the peace of mind that comes with having a clear understanding of your transaction. Even though it may seem like the details of the deal are all over the place, the contract is there to guide you along.
The real estate contract should also list all of the relevant features that make up the most important parts of a real estate deal. For example, it is likely that the contract will contain a financing clause that outlines how much the buyer will be paying for the property. Likewise, the sales contract should list the buyer’s legal capacity.