7+ SAMPLE Home Sale Contract
What Is a Home Sale Contract?
A home sale contract is a document that contains the terms of the purchase of a property. It is a binding agreement about the home sale. It can also be called a house sale contract, real estate contract, or purchase sale agreement. It is an agreement between the buyer and the seller, with all the terms of the transaction. All the conditions that both parties should follow are written in the contract. The contract is in effect after the buyer made an offer to buy the house. After that, proposed conditions that will spell out the terms of the contract will be given.
The seller can accept, reject, or negotiate the conditions after the buyer has made an offer. After negotiations, counteroffers may happen. The contract will be signed by both parties when they are both content with the terms of the agreement. So, the property will be up for sale and both parties will be under a contract. The intent of both parties to enter a home sale transaction is defined in the contract. Through it, they can have a solid agreement that will meet the conditions for the sale and the transfer of the ownership of the property.
When you are buying a home, a home sale contract is a must. It is for your protection upon buying the house. You will have proof that you have already purchased the house, aside from the deed of sale and the title of the property. Through the home sale contract, you can have smooth transactions with the buyer. There will be evidence that you have done a deal with them. Through the contract, everything will be clear. Right expectations can be clear with the buyer and the seller. Both parties will have what they need from the contract. So, by having a contract, both parties can be happy.
So, everything about the contract should be clear even from the start. You must be definite about the home sale contract cancellation and home sale contract extension. Be sure to make good terms in every condition of the contract. And of course, you should have a good home sale contract format. Be sure that you can make the contract perfect. Use good language in making the contract. Be sure that every term will be easy to understand by both parties and every reader. Make a neat contract that you can be proud of. And do not forget to consult a lawyer to confirm that the contract is perfect. A good home sale contract will just mean that you had a perfect deal with the buyer or the seller.
Elements of a Home Sale Contract
Have you seen a home sale contract sample? Have you ever wondered about the things that are included in it? Well, you should know that it has essential elements that make it complete. Read and consider the following to know some of the elements of a home sale contract:
Buyer Information: You should provide the buyer details in the agreement. Write the name of the buyer together with the address and contact information. Be clear in writing the buyer’s information. This is to give full assurance that the property is sold to that particular buyer.Seller Information: The information of the seller should be given in the contract. You should include the name of the seller together with the address and contact information. Write the seller’s information clearly. The contract should contain to whom the money will be paid for the purchase of the house.Purchase Price: The agreed-upon selling price should be written in the contract. This is the total price that the buyer has to pay the seller. Be clear in writing the purchase price to not raise any dispute between the buyer and the seller.House Details: This is the information about the property. You should include the address of the purchased house in the contract. You should also include the type of the house and you should provide a property description. Describe the house as detailed as possible to give an accurate report in the agreement.Representation and Warranties: This is a statement about the condition and structure of the property when it is sold. This is needed to construe that the purchase price for the property is right. This way, no one can contest the purchase price. The buyer will also have the right expectations about the property. If the buyer accepts the property when he or she knows that there should be some repairs that have to be done for it, then it will be so if the seller will just be honest about that in the contract. Those are the kind of things that the seller has to disclose.Included Items: You have to be clear about the items that are included in the purchase of the house. Sometimes, fixtures and appliances are included in the purchase. So, you have to put in the contract that the buyer does not have to give additional payment to them. You should put a clause in the contract that will state your terms about included items, whether they are included in the purchase price or if you like an additional payment.Financing: Financing is one of the ways how can a buyer pay the seller. Through financing, the buyer can pay installments for the house. They do not have to pay in full at a single time. Financing is the solution when the buyer does not have the full payment for the house. They can resort to financing through a mortgage. Through it, they can pay for the house monthly without worrying about having a large amount of money that can be paid for the house that they want to purchase.Title Insurance: A clause should be written about the title insurance. This will assign payment for the insurance for the protection of the property. This is important if ever defects can be found in the property. You can find compensation if ever defects occur.House Taxes: Taxes are crucial in having a house. So, the buyer and the seller should know how to pay taxes for the property. They should negotiate about this thing. Without paying taxes, the property will not be legal. So, both parties should ensure that the taxes on the property will be paid. An assignment contract can be done for paying taxes.Contingencies: There are some things that need to be done before the sale. Some of these are home inspections and repairs. So, the seller has to set a certain date for all these things. All of these must be accomplished.Termination: If ever one of the parties wants to leave the contract, there should be a clause about termination. Some things may happen like the buyer does not have money to pay for financing anymore. In cases like this, both parties should know how to end the contract. They should have the proper terms that can settle everything. This way, both parties will have a good option if ever unexpected things happen.Closing Date: This is the date when the title of the property will be officially transferred to the buyer. This means that the buyer has paid the property in full. You must include a date about the closing date. This way, you will not have any problems with the transfer of title.Earnest Money: This is the amount that the buyer pays the seller to show good faith in buying the property. One example of earnest money is the security deposit. Through it, the seller can be confident that he or she can get something out of the agreement. The earnest money is an assurance that you are a good buyer.Signatures: The contract will only be valid if it has the signatures of both parties. So, you must allot signature blocks where both parties can sign. To make the contract binding, the signatures of the buyer and the seller are a must.
Tips on Home Sale Contract
Buying and selling a house takes a lot of steps. In fact, you need to consider numerous requirements, procedures, and documents. And this includes a home sale contract. As the seller, it is essential that you are familiar with the document to be able to explain it well to your client or buyer. Below are a few tips to guide you through.
Be Sure About the Property: Before entering a home sale contract, be sure about the property that you are purchasing. Be sure that it is the house that you want. Entering financing in buying a home can give you the responsibility to pay for years. It will sadden you while paying if you think that you do not want that house that much. So, in purchasing a house, be sure that you will choose the one that you like. This way, you will not be sorry afterward.Know That You are Buying Not Renting: You should know the difference between buying and renting a house. You should know that you have more responsibilities when you are going to purchase a home. You will be the one who will pay for repairs if ever something happens to the house. You should also know that the seller has no obligation to provide you with a livable home after you have signed the home sale contract.Consider All the Costs: Consider all the costs that you will have after buying the house. You should know that you have to pay for home inspections. You need a lot to tend to update the property. You should be aware of the hidden problems so that you will not be surprised. Actually, you need a budget plan for your new home. You have to pay for a lot of costs like when the house has termites or wood rot.Make Sure That the Seller Owns the Property: Before entering a home sale contract, you should ensure that the seller owns the property outright. Many scammers are working nowadays so you have to be careful. You cannot afford to be scammed by some people who do not truly own the property. To be sure of the validity of ownership, you should ask for the title of the property and have it inspected by a lawyer. This way, you can ensure that the seller truly owns the property.Pay Off to Be Considered a Homeowner: You should remind yourself that unless you have paid in full, you do not own the house yet. Wait for the title of the house to be transferred to you. After that, you can consider yourself the homeowner.Read the Contract Carefully: Before signing the contract, you must read it carefully. Do not sign the contract unless you are completely sure of all the terms that are in it. Review the contract before signing. If possible, show it to a lawyer so that you can be sure of all its content. You have to be completely aware of everything that is in it.
How to Write a Home Sale Contract
Writing, reading, and understanding the content of a contract can be daunting and time-consuming when you are not familiar with its terms and structure. You wouldn’t want to sign an ambiguous contract and neither would your client. So, to help you further understand the contents of your home sale contract, it’s best that you know the key information about the document through these steps.
Step 1: Draft the Contract
The first thing that you should do is find forms or templates that you can use for your contract. Search on the internet for the best templates that you can use as a pattern. After that, format your document.
Step 2: Title the Document
After that, put a good title for the document. Having a good title can make your contract more professional. Write the title in bold letters. Place it at the center of the document.
Step 3: Include the Terms of the Agreement
Then, you have to tend to the provisions. State the terms of the agreement. You should write carefully the termination clause, closing date clause, earnest money clause, and other clauses. Be sure that you will put the things that you and the buyer have agreed upon.
Step 4: Consult a Lawyer
After you have finished the draft of the contract, you should show it to a lawyer. Hire an attorney and consult him or her about the contract. Make sure that you have the best terms for the agreement. If the lawyer thinks that your contract is good, then you can send the contract to the buyer for his or her signature.
Who pays for the home sale contract?
The associated fees for the home sale contract should be paid by the seller.
Who should write the purchase offer?
If you are working with a realtor, he or she might be the one who will write the purchase offer. They will show it to you for review.
Should a personal letter be given to the seller?
A personal letter does not make much difference in buying a house. But it can give you some advantage if the seller wants to know the buyer of the property.
If you are going to buy a new home, be sure to enter a home sale contract. It is for your protection to ensure that you can get the most out of the deal. You can be confident that you will transact good business by having a contract. Well, do you need a template for a home sale contract? This post has 7+ SAMPLE Home Sale Contracts in PDF. Creating a great contract will be easy for you with the help of these templates. Download now!