Congratulations! You have chosen your favorite home in your home buying adventure. Now, you can write up the contract or head back to the office. The following really depends on the area so check with local professionals deemed by local (sometimes national) governments to be the appropriate professionals for consulting and doing real estate transactions, including disclosure for appropriate professionals in all areas of expertise.
In most cases, you will need what is called Earnest Money. A personal check, cashiers check or cash, typically in the amount of 1% of the purchase price (depends upon the area), which is deposited into the brokerage trust account or a title company (depends upon the area), and credited to your purchase (may depend upon the area) upon successful closing of this transaction.
Standard Real Estate Purchase Contract
Several elements can be included during your written contract. One good piece of advice would be to use the standard Real Estate Purchase Contract that is used for your state. Local governments and appointed agencies governing those applicable contracts will have a large body of law and wisdom governing transactions in each particular state. If you draft your own contract, rather than using the state sponsored ones, you may be really going out on a limb by using something that is not proven to avoid problems.
Ã?â‚??Another thing to remember, involves situations falling outside the normal used contracts, but still common enough that the governing body, used to help in the formulation of addendum writing or additions to the standard contracts, has come up with Standard Clauses or 'Standard Addendums'. In such instances, it has often turned out to be very protective to use the language governed by each state, rather than making up your own language that when checked in a legal sense, is full of all kinds of ambiguity and inconistency. You may even have misunderstandings thinking the other side knows what you are saying, when they are reading a whole different scenario into what you have written. Having the appropriate realtor or lawyer, depending on which is required for each state can help you know what these clauses and addendums are.
Ã?â‚??For situations that don't have Standard Clauses or Standard addendums, then it can be advisable to rely on the experience and expertise of a good lawyer and sometimes a good realtor, when as typically allowable in many states. Be cautioned that a realtor is often not trained specifically in contract writing and will often if not always be trained to disclose this fact and of disclosure to seek the appropriate professionals in each field of expertise along the way that you might need.
Ã?â‚??A lawyer or in areas where admissible, a realtor or local deemed professional can help in writing a contract and in negotiating offers. The right professional will make sure you are represented on paper well... this is the hallmark of good representation. The hallmark comes from the historically supported law adopted by almost all the states taken from England called the statutes of frauds. This grand maxim says that 'if it is not in writing it does not exist'. As such, it should be noted that a good lawyer or realtor will push for even minor details to be on paper.
Ã?â‚??Your offer is presented, negotiated and upon "complete agreement between the parties in writing about the purpose and terms of the contract" and "communication back to the party making the offer ", the contract becomes binding. The definition of 'Acceptance' and the type of 'Communication' needed in order to make it a valid and binding contract, may vary depending on state or county definitions and laws. So, consult with your appropriate local professionals.
Now that you have an accepted offer, some tasks lie in front of you to keep you in the keeping of your contract. These tasks or detailed steps may vary from state to state or county, but usually include the following: Application for a Loan, Sellers Disclosures, Escrow/Title Co. Coordination, Deadlines and events to include Evaluations & Inspections, Settlement Deadline, Closing and final Taking of Possession. Your realtor/lawyer can help guide you through all of the deadlines, responsibilities, inspections, and disclosures towards a smooth, seamless and successful settlement and closing of your home purchase!
