The sales contract will be a critical document used during the sale of your house.
Once you have received an acceptable offer from a buyer, the two of you will then sign a for sale by owner sales contract agreeing to the offer.
(There is a link to download a free ebook, that gives you 101 Tips For Selling Your House that helps you with contracts, at the bottom of this page).
Generic for sale by owner sales contracts can be purchased from a major office supply store like Office Depot, Office Max, or Staples.
If you are using a real estate attorney, he or she can also put together a for sale by owner sales contract for you. Understanding the sales contract is essential for a successful real estate deal.
Essentially, the purpose of the for sale by owner sales contract is to outline key pieces of information from the housing transaction. These are: the property that is being sold, the name of the buyer, the name of the seller, the amount the buyer will pay, and the date that the title and money will be exchanged.
At first look, a for sale by owner sales contract appears to be a complex document. If you understand each section singly, the document as a whole will make more sense.
In the first section of the for sale by owner sales contract, there will be a legal description and physical address of your property. The legal description gives the country government a way to identify your property in the event that the street address changes. The legal description of your property will always be the same.
The next section covers the purchase price of the home and the method in which the buyer will be purchasing the home. Most often, a mortgage loan is the method of payment. This section details out the amount of the down payment, earnest money deposit, and mortgage loan amount. The name of the escrow agent who will hold the earnest money deposit is also listed.
Many of the pages in the for sale by owner sales contract are contingencies that basically ask a series of what if questions. In the event that a contingency occurs, the buyer and seller can refer to the sales contract to determine what action, if any, should be taken.
Inspections that the buyer can request are also included in the for sale by owner sales contract. There are usually three clauses for inspections - one for general inspection, one for roof inspection, and one for termite inspection. The clauses stipulate that the seller has to pay to repair any items that fail inspection. The buyer and seller can also agree to the property being sold "as is." This eliminates the need for inspections or repairs.
The closing date is documented in the for sale by owner sales contract. This date is usually from 30 to 45 days after the sales contract has been signed. It can be longer to give you time to move.
If there is any part of the for sale by owner sales contract that you do not understand, you can review it with a real estate attorney to get clarification. You should not sign the for sale by owner sales contract if you do not agree with the terms or do not completely understand what you are agreeing to.
If you follow these tips you will find your house sale going through nice and smoothly.
