What is in a sales contract?
Your signed offer to purchase is the document you draft which presents your price and terms to the seller. (The name of the document varies. Ask an agent what it is called din your area.) This purchase offer must be complete because when the seller signs it, the document becomes the binding "sales contract"
that contains the conditions of the sale. If you forget something in the offer, you usually can't add it to your sales contract later.
Terms and conditions of the contract vary depending on the situation Following are typical matters you and a seller may negotiate and agree on:
- What items convey with the home, such as chandeliers, appliances, personal property, swimming pool chemicals, etc.
- The sale price.
- The amount of your deposit ("earnest money")
- The amount of your down payment and/or the mount of mortgage loan you intend to obtain.
- The date, time and place of settlement, when you take possession of the home. Be sure you and your seller have a clear agreement about the date of occupancy.
- Any contingencies (agreed upon by you and the seller) which must be met before settlement can take place, such as : improvements (painting, roofing, etc.); termite inspection, proof of clear title to the home; legal review of the contract by either or both buyer's and seller's lawyer(s); your ability to obtain a specified mortgage loan within a specified time at agreed-upon interest rates and points, and/or specified seller financing.
Your signature and that of the seller. (Remember you can always withdraw an offer until the seller has signed it.)