By Meghan Belnap
When buying or selling a home, it is important to have a real estate contract. This document outlines the terms and conditions of the transaction. Here are a few things to consider when reviewing your real estate contracts.
The Sales Price
The sales price is one of the most important aspects of a real estate contract. This is the price that the buyer will pay for the property. It's important to ensure that the sales price is fair and reasonable. It would help if you also ensured that the sales price is consistent with the property's value.
The Terms of the Contract
The terms of the contract are also important. You should ensure that the contract includes all the important details, such as the closing date, the amount of the down payment and the amount of the monthly mortgage payments. You should also be aware of any special provisions in the contract, such as an inspection clause or a contingency clause.
The Financing Terms
The financing terms are also important. You should make sure that you can afford the monthly mortgage payments, and you should also make sure that you are aware of any prepayment penalties or other penalties associated with early repayment of the loan.
The Inspection Clause
When signing a real estate contract, it is important to pay close attention to the inspection clause. This clause outlines the steps and timeline for professional property inspections, such as for pest control or structural issues. A lawyer like carterwestlaw.com might recommend ensuring that the clause includes language allowing you to back out of the deal or renegotiate if significant issues are uncovered during the inspection process.
In addition, make sure that any required repairs are clearly stated in the contract, with a set timeline for completion before closing. Neglecting reviewing the inspection clause could potentially leave you with costly surprises. Make sure to talk with your real estate agent and lawyer about this crucial aspect of your contract before signing on the dotted line.
Warranties and Representations
Warranties and representations are important because they protect both the buyer and the seller. The seller should ensure that the property is in good condition and that there are no hidden defects. The buyer should make sure that they are getting what they are expecting. If there are any problems with the property, the buyer can use the warranties and representations to back out of the deal or get a refund.
These are just a few things to consider when reviewing your real estate contract. Make sure that you understand all of the details before you sign anything. If you have any questions, ask your real estate agent or lawyer for clarification.