What are the Components of a Real Estate Contract?
Although there will be some variance based on the location of your residence, most Real Estate contracts contain most or all of the following items:
1.What: A legal description of the property as well as the street address.
2.How much: The selling price.
3.Mortgage contingency: Subject to obtaining a mortgage (if applicable) and the specifics of the mortgage–amount, rate and term. Application to be made in X number of days.
4.Deposit: How much money accompanies the contract and who will hold it.
5.Closing: When and where.
6.Inclusions and exclusions: What is and is not included in the sale of the property.
7.Home inspection: Contingency for and to be done in X number of days.
8.Warranties: Any that are included with the house and description of the warranty.
9.Condominium: If the property is a condo, other provisions will apply.
10.Well and Septic: If applicable, they must be tested (and pass).
11.Termite and Pest inspection: Who will pay and if there is infestation or damage, who will repair.
12.Possession Date: When the buyers take possession of the house–before, at or after closing.
13.Acceptance: How long the sellers have to respond to the offer with either acceptance or a counter-offer.
14.Arbitration: Any provisions for arbitration of disputes.
15.Insurance: Whose insurance covers the property up until the closing date.
16.Property Disclosures: Notices of any property disclosures concerning the house.
Contract forms available at FIndLegalForms.com:
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