Whether you are the buyer or seller, you will want a contract when it comes to dealing with your property.? You can either find one on the Internet to download, or you can write one of your own.? It is not really important where you come up with the form as long as you have one.
Real estate is a buyer beware market.? The buyer must protect himself.? The seller must also look out after his interest.? It is imperative the contract be worded properly to allow both parties to be protected.? Without a properly worded real estate contract, things could become very bad for either party.? This could cost money on both ends in the long run.? To avoid any conflict, you should have a contract which has been signed and dated by everyone involved.
The real estate contract should include:
1)??????The property address with the legal description as well.? This way there is no confusion as to which property is being sold.
2)??????The names of the parties involved.
3)??????The purchase price.
4)??????The terms of the financing.? This means when the contract will go into effect. How long the buyer has to get financing.? It will also include if the seller is going to help with closing costs. What will happen if the buyer can not obtain financing.
5)??????Any disclosures the property owner must make.? This includes lead paint disclosures, damage reports or disclosures, and other pertinent information concerning the property. This can include any easements or right of ways which may be in the deed.
6)??????A list of what goes with the property.? This can include window treatments, appliances, heating units like wood burners, ceiling fans and light fixtures, or other things which are agreed upon by the parties involved.
7)??????Time of possession.? This line will state when the seller is moving out and the buyer can move into the home.? This is often overlooked but a critical part of real estate.? If it is not in the contract, a seller can take as long as they want to move.
8)??????Prorations. This determines how the paid taxes will be handled.? It specifies how much the seller will get back for the taxes already paid and when the buyer must start paying them.
9)??????Default.? If the buyer or seller is in default of the contract this is where you would put what will happen.
There are many other things which you can stipulate in the contract, if you see fit. The more simple the wording the less confusing it becomes.? There are not as many loop holes when the wording is very specific.? However, it does not have to be a lengthy contract to be binding.? As long as both parties are in agreement, and it does not conflict with the real estate laws of your area, the contract is valid to all the parties involved.? When you are writing the contract yourself it is a good idea to allow the other party to participate in drawing it up.? This way everyone is satisfied with the final draft.? When the signatures are witnessed and notarized, you have a legalreal estate contract.
Rusty Gerdes is a Finance graduate who chose to specialize in Real Estate. He excelled in the field and has long been a part of?RE/MAX Bryan-College Station. He has brokered successful real estate deals with the finest?homes for sale college station and has been hailed as one of the valuable assets of?Bryan-College Station Real Estate.
Source: http://web.ics.purdue.edu/~griffin/406/2012/08/writing-a-real-estate-contract/
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.