Once you’ve found the home you want to settle down
in, the next step is to make is yours. This is done with a series
of steps one of which is signing the sales contract. The sales
contract is a legally binding document. If you are intimidated by
signing one, you are perfectly right to feel so. Nevertheless, as
long as you make sure the information contained in the sales
contract is in your best interest, then you have nothing to
fear.
The sales contract should include several pieces of information
that have an impact on the sale. Here are the key pieces of
information that most sales contracts will include.
* A legal and physical description of the property being purchased.
The legal description is used by the county government to identify
the property even if the street address changes. The legal
description of the property will never change.
* The selling price and method of payment should be included. In
most cases, a mortgage is the method of payment. In this section of
the sales contract, there should be details about the amount of the
down payment, mortgage loan, and earnest money deposit. The name of
the escrow that will hold the earnest money must be included. If
you have any contingencies about the mortgage, they should be
listed as well.
* The closing date must be laid out. Details about when and where
should be included in the sales contract.
* What’s included and what’s not included in the sale should be
detailed. If the seller agrees to throw in appliances, it must be
listed in the sales contract. Otherwise, you could end up
purchasing your own appliances.
* Any warranties that are included with the home
should be detailed in the sales contract. A description of the
warranty should also be listed.
* If there is a well and septic, they must pass testing.
* Termite and pest inspection should be conducted. The sales
contract should detail not only who will pay for the inspection,
but also the party responsible for any repairs if infestation or
damage is discovered.
* The exact date that the buyer will take possession of the home
should be included. This date can be anytime before, at, or after
closing.
* The sales contract should include the amount of time that the
seller has to respond to the offer, whether it is to accept or
counter the offer.
* Provision for arbitration is sometimes included.
* Either the seller or the buyer will have to pay for property
insurance up until closing date. The sales contract should
stipulate the responsible party.
* Any property disclosures pertaining to the house should also be
included in the sales contract.
In many cases, the seller will have the sales contract, especially
if he or she is working with a real estate agent. You might also
want to have sales contracts on hand. You can purchase these from
an office supply store like Office Max or Office Depot or
download our free forms from Here.
