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What are the details of the terms in a home sale contract?

On Behalf of | Feb 4, 2020 | Residential Real Estate |

The excitement of buying a new home can be overwhelming, but it is important to remember that such a transaction will have many details that need to be addressed so that the legal process of transferring ownership is done correctly. The details will be included in a home sale contract, also known as a purchase agreement. So, what are the details of the terms in a home sale contract?

It starts with some of the basics, such as the names of the buyer and seller, a description of the property that is being sold and, of course, the purchase price. But, as with any legal contract, there are many more details that can be included so that all possible contingencies might be addressed.

Besides the purchase price, a home sale contract may typically also include a time frame for the buyer to secure financing for the deal, if necessary, or spell out if the deal is going to be “all cash.” If there is any earnest money to be included while the deal is pending, the details of the amount of those funds and where the funds will be deposited will also be included in the home sale contract. There are also usually terms about a title search and the contingencies dealing with any potential problems with the title to the property. Lastly, the home sale contract will include the date upon which the parties will “close” the transaction, and then the date upon which the buyer can take possession of the property.

While the general framework of home sale contracts may be similar in most cases, the exact details are always different. Having the terms of these contracts reviewed from a legal standpoint can help buyers and sellers identify any areas in which potential problems might arise.