If you`re in the market for buying or selling a home, it`s important to understand the legal language in a real estate sales contract. A sales contract, also known as a purchase agreement, is a legally binding document that outlines the terms and conditions of a home sale.
To help you get started, we`ve put together a real estate sales contract sample that includes some key clauses you should consider including in your own contract.
1. Property Description
The first section of a sales contract should include a detailed description of the property being sold. This should include the address, legal description, and any other relevant details about the property.
2. Purchase Price
The purchase price is the amount that the buyer agrees to pay for the property. This should be clearly stated in the contract along with any applicable fees or taxes that will be added to the purchase price.
3. Earnest Money Deposit
An earnest money deposit is a sum of money that the buyer puts down to show their commitment to purchasing the property. This amount is usually a percentage of the purchase price and is held in escrow until the closing.
Contingencies are conditions that must be met before the sale can be completed. These can include things like a satisfactory home inspection, the buyer obtaining financing, or the sale of the buyer`s current home.
5. Closing Date
The closing date is the date on which the sale will be finalized and the transfer of ownership will take place. This should be clearly stated in the contract along with any contingencies that may affect the closing date.
6. Closing Costs
Closing costs are the fees associated with completing the sale. These can include things like title search fees, appraisal fees, and attorney fees. The contract should specify which party is responsible for paying these costs.
7. Home Warranty
A home warranty is a service contract that covers the cost of repairs or replacement of major home systems and appliances. The contract should specify whether a home warranty will be included in the sale and who will pay for it.
While this real estate sales contract sample is not exhaustive, it serves as a starting point for understanding some of the key elements that should be included in a sales contract. Remember to consult a qualified real estate attorney to ensure that your contract meets all legal requirements and protects your interests as a buyer or seller.