Do You Know What’s Included In A Sales Contract?

Because a signed presentation of an offer is binding on all concerned, the contract includes a number of specific items, such as:


• Date, name and address of seller and buyer, and the property’s legal description.

• How much money was paid on deposit and kept by a third party in an escrow account.

• Purchase price.

• Amount of down payment, and how the buyer will finance the rest of the purchase price. The buyer usually states the highest interest rate the buyer is willing to pay. If the buyer cannot secure financing at this rate or less, the buyer often retains the right to cancel without penalty.

• Date of projected occupancy. If the seller cannot vacate and thereby becomes the temporary tenant of the buyer, a daily rent-back arrangement should be made for "post settlement occupancy."

• Contingencies, if any, such as review by attorney, structural inspection, appraisal, or contingency for sale of buyer’s present home.

• Other important provisions, including the list of items that convey with the sale, stipulation that title must be free and clear, and who is to pay various settlement costs.

Whether you are buying or selling, we can help you obtain the best sales contract for your particular situation. Call or e-mail us today for assistance on all your real estate needs.