Facing A Sales Contract: What Buyers Should Know
It's a happy moment when the seller accepts your offer and you are presented with a signed real estate contract. Read on for a deep dive into the details of that contract.
The Sales Price
This is, without a doubt, the star of the show. The price you see listed represents a lot of time and effort on the buyer's part to find the best home they can at a certain price point. Both buyer and seller will need to agree to the terms of the contract, so do yourself a favor and read the rest of it before you move forward.
Real Estate Legalese
There is a lot of information on real estate sales contracts that is not readily understood. Much of it is so-called "boilerplate" wording included on all pre-printed real estate contracts in your state. What you do need to know is that you are entering into a legal contract to purchase a home and there are ramifications if you don't go through with the deal. If you need more information about the legal wording, speak to your real estate agent.
In most cases, the people involved in your real estate contract are limited to you and your spouse or partner and the sellers. However, some homes are purchased from the estate of the deceased or from a business or corporation. Banks or lenders can also be the owners of homes.
Most homes have several ways of being located. You probably already know the street address, but if the home has alternate addresses, they will be listed in this section. You will also have a legal address that is comprised of measurements taken from a survey and listed with the county property management agency.
This area of the contract can be almost as important as the agreed-upon price. Contingencies allow both sides an "out." If a contingency is not met, the seller can back out of the contract with no legal ramifications. Also, you, as the buyer, can back out of the contract and be refunded your deposit or earnest money. Contingencies vary, but they usually address the condition of the home pending a professional home inspection, getting financing, and more.
Your closing may be scheduled at the time of the contract, but that date can change if needed. Also included in many contracts is an estimate of closing costs along with who is responsible for paying them — the buyer or the seller.
To get more facts about any of the above, contact a real estate agency like The Georgia Club Realty.