CONTRACT OF SALE
What exactly is involved in a real estate contract? Here's a breakdown of what most contain, although the exact structure might vary based on your location.
What: A legal description of the property as well as the street address.
How much: The selling price.
Mortgage contingency: Subject to obtaining a mortgage (if applicable) and the specifics of the mortgage, amount, rate and term. The loan application is to be completed in (X) number of days.
Deposit: How much money accompanies the contract and who will hold it.
Closing: When and where.
Inclusions and exclusions: What is and is not included in the sale of the property.
Home inspection: Contingency for and to be done in (X) number of days.
Warranties: Any that will be included with the house and description of the warranty.
Condominium: If the property is a condo, other provisions will apply.
Well and Septic: If applicable, they must be tested (and pass).
Termite and Pest inspection: Who will pay and if there is infestation or damage, who will repair.
Possession Date: When the buyers take possession of the house, before, at or after closing.
Acceptance: How long the sellers have to respond to the offer with either acceptance or a counter-offer.
Arbitration: Any provisions for arbitration of disputes.
Insurance: Whose insurance covers the property up until the closing date?
Property Disclosures: Notices of any property disclosures concerning the house.