Most real estate contracts can seem extremely overwhelming with their
confusing real estate terms that you might not understand. This article
helps describe different terms in a simpler way.
So, 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 well being. 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.
The purchase offer is also listed along with any down payment, or
earnest money, the buyer may have put down. The terms explained 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 obtain information on the sales agreement concerning
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 has a warning clause for the buyer. This
is the �As Is� terms the buyer is purchasing the property under. He or
she has claim 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 could 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 discard the contract completely, agree to
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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