Real Estate Contracts

by : Tyler Fawcett

A real estate contract is a confusing thing to view if you have need seen one before. These are the documents that have every detail of a home sale and purchase listed on them. These contracts contain a number of different categories and it is important to read over these documents in detail. This will familiarize you with all aspects of the sale and ensure that you are educated on the purchase or sale of your home.

A typical sales contract will contain the following important information:

A description of the property involved. This should cover all aspects of the property including the address. It will detail the selling price, and any subjects that were involved in the sale. This includes such things as financing and inspections. It will also hold information about the mortgage such as the amount and term and the rate of the mortgage itself. Deposit information should also be detailed in the contract. The amount of the deposit and where it will be held is extremely important. The next item of concern should list what is and what is not included in the sale. This applies to things such as window dressings, appliances and fixtures and anything else that the previous owners will be removing from the house when they move. The details of the closing should also be listed, when and where it will happen and under what conditions.

Other important details that will be listed on a contract include any warranties on parts of the home. Usually this applies to things such as a "New Home Warranty," or usually the roof is warranted as well. Many homes utilize wells or septic tanks, these must be tested and pass the testing and be listed on the contract. A well written contract will also include information such as the date of possession once sold, and how long the sellers have to respond to offers during the sale process. Of course, the contract must also detail the process of arbitration if necessary, the insurance that will cover the home during the sale and and property disclosures related to the home in question.

Remember, your Realtor is a skilled individual when it comes to understanding and interpreting these contracts. Do not be afraid to ask questions and inquire about any aspect of the contract that is of concern to you. It is your Realtors job to ensure that these contract issues are understood by you at all times.