Transactions involving real estate properties won't be complete without the necessary documents.
Written and signed documents are important to legitimize these deals between two or more parties.
One vital form involved here is the real estate contract also known as purchase agreement or sales contract.
A real estate contract is needed in the sale or purchase of a home and must be entered into by the parties involved voluntarily.
In some cases, the purchase agreement presented by a homebuyer to a seller can already serve as the contract.
In the U.
S.
, the Statute of Frauds requires that real estate contracts should be in writing to be considered enforceable.
However, as real estate laws vary from one state to another, this form may also differ in some states.
The information contained in a contract pertains mostly to a piece of real estate property but it also includes the names of the home seller and the buyer.
If you're in the process of selling your home and are not sure what to include in a contract, it's best that you consult a lawyer who specializes in real estate to help you with this concern.
If you plan to get the services of real estate agent, your agent will take charge of preparing this document.
Specifically, a real estate contract identifies the property involved.
Details should include a legal description of the house and the exact address.
The full name of the seller and the buyer or the principals should be on the document.
As principals, they are distinguished from the real estate agents who serve as representatives during the negotiation process.
The signatures of the two parties should also appear on the contract to be considered legal.
Being a sales transaction, the purchase price of the property must be stated.
Contingencies are normally included in real estate contracts.
One of the most common pertains to mortgage calling for the buyer to obtain a loan within a specific timeframe after the contract signing.
Home inspection is another contingency required by most buyers.
This is to ensure that the property is in good condition without material defects before closing.
In some cases, the home buyer may also include an appraisal contingency to ascertain the property's fair market value.
This is useful to the buyer considering that lenders refuse to approve a loan more than a home's appraised value.
The closing date is usually also specified.
This refers to the date when ownership of the property is transferred from the seller to the buyer.
However, a separate date may be stated as to the transfer of possession of the house or the day when the owner has to vacate the house.
It's ideal as well that the closing costs and the parties responsible for paying them be written in the contract.
Sellers often shoulder most of these costs as an incentive to their prospective buyer.
However, both parties can also agree to split the costs between them.
Notarization is not needed for a real estate contract.
What usually requires notarization is only a seller's signature on a deed as required by many recording offices.
Now that you know the details in a contract, be sure to read and understand carefully all the terms and conditions before signing the document.
Written and signed documents are important to legitimize these deals between two or more parties.
One vital form involved here is the real estate contract also known as purchase agreement or sales contract.
A real estate contract is needed in the sale or purchase of a home and must be entered into by the parties involved voluntarily.
In some cases, the purchase agreement presented by a homebuyer to a seller can already serve as the contract.
In the U.
S.
, the Statute of Frauds requires that real estate contracts should be in writing to be considered enforceable.
However, as real estate laws vary from one state to another, this form may also differ in some states.
The information contained in a contract pertains mostly to a piece of real estate property but it also includes the names of the home seller and the buyer.
If you're in the process of selling your home and are not sure what to include in a contract, it's best that you consult a lawyer who specializes in real estate to help you with this concern.
If you plan to get the services of real estate agent, your agent will take charge of preparing this document.
Specifically, a real estate contract identifies the property involved.
Details should include a legal description of the house and the exact address.
The full name of the seller and the buyer or the principals should be on the document.
As principals, they are distinguished from the real estate agents who serve as representatives during the negotiation process.
The signatures of the two parties should also appear on the contract to be considered legal.
Being a sales transaction, the purchase price of the property must be stated.
Contingencies are normally included in real estate contracts.
One of the most common pertains to mortgage calling for the buyer to obtain a loan within a specific timeframe after the contract signing.
Home inspection is another contingency required by most buyers.
This is to ensure that the property is in good condition without material defects before closing.
In some cases, the home buyer may also include an appraisal contingency to ascertain the property's fair market value.
This is useful to the buyer considering that lenders refuse to approve a loan more than a home's appraised value.
The closing date is usually also specified.
This refers to the date when ownership of the property is transferred from the seller to the buyer.
However, a separate date may be stated as to the transfer of possession of the house or the day when the owner has to vacate the house.
It's ideal as well that the closing costs and the parties responsible for paying them be written in the contract.
Sellers often shoulder most of these costs as an incentive to their prospective buyer.
However, both parties can also agree to split the costs between them.
Notarization is not needed for a real estate contract.
What usually requires notarization is only a seller's signature on a deed as required by many recording offices.
Now that you know the details in a contract, be sure to read and understand carefully all the terms and conditions before signing the document.
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