Contract Review
Sales contracts may differ significantly yet all should clearly set forth the responsibilities and privileges of all the parties involved. It is a legally binding document that protects each party. Carefully review the terms of the contract. The sales contract should include the following:
Legal- Legal description of the property and the exact street address
- Selling price of the property
- Amount of earnest money and who is holding it — often it is held in an escrow account by a third neutral party
- Amount due at settlement
- Specifics of the mortgage (amount, rate and terms)
- Title or escrow company — either a title company, escrow company, or attorney must be agreed upon by buyer and selle
- Details of the closing — when and where
- Home inspection — recommended to ensure against structural and unknown defects and must be completed by a certified home inspector by a specific date set forth in the contract
- Inclusions and exclusions — examples would include washers, dryers, drapes, etc
- Pest Inspection — who is responsible if there is damage or an infestation
- Warranties — get the description of any that are included with the house
- Repairs — unless you are accepting as-is, state who is responsible for repairs with a date for a walk-through inspection
- Well and septic — they must past a test, if applicable
- Date of possession — when you take possession of the property
- Acceptance date — either an acceptance or counter offer must occur by a specified date
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