The Real Estate Contract to buy or sell your house will most likely be one of the most important documents you sign in a lifetime. The Buy/Sell Agreement, as it is called, can be intimidating due to the legal jargon and the sheer amount of detail. Let’s walk through the contract together for better understanding. Be sure to read through the entire document, look up the legal terms you don’t understand and ensure the details of the agreement are correct.
LOCAL MARKET REPORT
MLS Tri-County closed 1,856 homes during June 2019, and has closed 8,821 YTD (compared to last year 8,969). June showed the highest number of Pending Listings for June, in the past 10 years at 1,691, that is compared to last year at 1,503.
NATIONAL MARKET REPORT
THE BASIC ELEMENTS OF A REAL ESTATE CONTRACT ARE:
· Parties Involved (Buyer & Seller)
· Address of Property Being Sold
· Sales Price
· Closing Date
· Possession Details
· Method of Payment
· Earnest money deposit amount
· Details about who pays for inspections, survey, title insurance, etc.
· Details about adjusting utilities, property taxes and other fees
· Initials & Date
- Parties: This will be where the names of the buyer and seller involved in the sales transaction are listed
- Address: The address of the property being sold is listed, including the lot and block and TMS numbers as well as details on sewer and water connections
- Conveyance: Sales / Closing date
- Possession: Details on the manner of possession and condition of property being sold.
- Purchase Price: Sales price agreed upon by both parties
- Earnest Money: Deposit amount agreed to by both parties and form in which money is being paid. This section also details who is holding the earnest money (escrow agent)
- Initials and date: Initials and date are required by both parties on each page of the contract
While these are the basic elements of the Sales Contract, it is important to ask your real estate agent for further clarification on sections or terms you don’t understand. For a basic list of contract terms see our last blog post Understanding the Closing Process.
If you have any questions, reach out to us at Drew Sineath & Associates. We are here to help and happy to assist you with any questions!