A real estate contract is a confusing thing to look at if you’ve needed to see it before. These are the documents that have all the details of the sale and purchase of a house listed on them. These contracts contain several different categories and it is important to read these documents carefully. This will familiarize you with all aspects of the sale and ensure that you are informed about buying or selling your home.
A typical sales contract will contain the following important information:
A description of the property in question. This should cover all aspects of the property, including the address. The sale price will be detailed, and the issues that were involved in the sale. This includes things like financing and inspections. It will also have information about the mortgage, such as the amount and term, and the rate of the mortgage itself. Deposit information should also be detailed in the contract. The amount of the deposit and the place where it will be held is extremely important. The next item of concern should list what is and is not included in the sale. This applies to things such as window dressing, appliances and fixtures, and anything else the previous owners will be moving out of the home. Details of the closure, when and where it will occur and under what conditions, should also be listed.
Other important details to be included in a contract include warranties for parts of the house. This usually applies to things like a “New Home Warranty” or usually the roof is guaranteed as well. Many homes use wells or septic tanks, these must be tested and passed and included in the contract. A well-written contract will also include information such as the date of possession upon sale and how much time sellers have to respond to offers during the sales process. Of course, the contract should also detail the arbitration process if necessary, the insurance that will cover the home during the sale, and the ownership disclosures related to the home in question.
Remember, your real estate agent is a smart person when it comes to understanding and interpreting these contracts. Don’t be afraid to ask questions and educate yourself on any aspect of the contract that concerns you. It is your job as a real estate agent to make sure that you understand these contractual issues at all times.