Real Estate Contracts Need to Cover All the Main Points of the Deal

You need to become aware of the various constituents of a real estate agreement, so that you are able to understand it much better when you need to sign one. Not being aware of such legalities can land you in trouble as you could be duped by unscrupulous people. Moreover, signing wrong documents or those not legally tenable can also cause problems in future with the law and you could lose the property if papers are not in correct order.

Let us understand some of the points that Real Estate Contract needs to cover.

a) The nature of the contract
This consists of a proper description of the piece of property under question in a legal form along with the full address.

b) Rate of sale

It mentions the rate at which the property is going to be sold

c) Conditions governed by mortgage
This mentions details of the mortgage that will be entered into including the amount, rate of interest and the tenure of the mortgage. It also mentions the approximate period by which the mortgage will be applied for.

d) Deposit amount
The amount of deposit involved and who will take custody of the same.

e) Place and time of the contract being finalized

f) Items included and excluded
There may be certain aspects and clauses that may be added or considered at a particular time in the contract and certain things may not be included at all at any time of the contract. It is however necessary to mention everything in the contract so that there is no cause for any confusion in future and things are clear to everybody at the time of signing of the agreement.

g) Inspection of the property at a particular time mutually agreed to by both the parties.

h) Inclusion of any warranties that go along with the house needs to be mentioned.

i) If the said property is a condominium then all rules pertaining to the agreement related to a condominium will apply and needs to be incorporated.

j) If the property has a well or septic tank within the premises, these need to be tested and sanitized and they must pass hygiene standards before they can be sold as part of the property.

k) Clear understanding about who will foot the pest control expenses and any repairs that may come up at a later stage also needs to be inked in the agreement.

l) The likely date of possession that will be done by the buyer. Is it going to be before or after the closing date?

m) A clear date by when the seller will respond either positively or negatively to the offer of the buyer.

n) Any insurance details along with other disclosures that pertain to the property.

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