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What Is a House Sale Contract?
A house sale contract is a document that states the agreement to sell a real estate property to a buyer. Sometimes, you have to hire an agent to get your dream house. You have to go through a lot of processes like financing. You even have to make an offer to purchase. It may be a little hard to get into the contract stage. The process has complexity and it is time-consuming. In having a formal offer to buy the house that you like, you have to complete a lot of paperwork. You need to negotiate the terms and conditions for the offer.
When you purchase a house, you should understand in full the conditions that are involved in the contract. You have to be careful about contingency clauses. Most contracts have contingencies. So, you must know all the issues regarding your sale. You should know the things that can affect your deal. But you should know that if contingencies are not met, you can back out with the deal together with your deposit. You will always have the opportunity to accept or reject the offer.
Whether you are having a house private sale contract, house pre-sale contract, or a standard house sale contract, you need to propose the conditions of your transaction. Have a thorough negotiation with the seller so that you will have clear terms on the agreement. Both parties should know what to expect within the contract. And as a buyer, it is your right to request your terms for the deal. The two parties can have offers and counteroffers to make the deal complete. They have to be satisfied before they will finalize the contract.
The contract shows the intention of both parties to engage in a house sale contract. Through the contract, the ownership of the property will be transferred to the buyer. This is the foremost purpose of the contract. The rights to the property should be given to the buyer after paying the payment price for the purchased house. Usually, real estate agents prepare the contract. They cannot create a contract but through a law firm, they can complete the transaction. Sometimes, a sample template will be given to agents that they can use for their buyers. So, on the side of the buyers, they must consult their lawyer to ensure that they are going to enter into a good contract.
Components of a House Sale Contract
Have you seen a house sale contract template? Have you noticed that it has essential components? These components are important to make the contract complete. In case you have not seen a template, we can tell you the components of a house sale contract. They are the following:
How to Write a House Sale Contract
Do you need a house sale contract or a property sale agreement for your upcoming transactions? Maybe you need some steps that you can use in writing. We can offer you some steps that you can use. Read and consider the following steps:
1. Find Forms and Templates
Making a contract is not easy. You need to be guided so that you can have the right ideas for the contract. To help you with what you are going to do, you must find forms and templates that can serve as a pattern in making the contract. Search for any agreement or contract sample on Template.net and pick the best that will be suitable for your purpose. You can find the right inspiration if you are diligent in searching.
2. Pick the Best Format
Using a good structure for your contract is advisable. Since it is a formal business document, you’ll have to make your contract look professional and presentable. Choose the best font style and size for your text and add a decent design available on the Internet to make it look great. You can even use editor tools to make your contract look better. Then, add a title to your document. Give a simple but clear title to your contract. Of course, you have to assert that it is about selling a property. Make a good title that can reveal the purpose of your contract at a glance—you do not have to make a long title. Just keep it simple.
3. Write the Name of the Seller and the Buyer
Then, you have to go through the identification of parties. You should write the name of your buyer, as well as your name as the seller. Together with your names, write your contact information. You have to clarify to whom will the contract be addressed. The name of both parties should be clear in the contract. Afterward, both you and your client have to negotiate about your earnest money. This can make you confident that everything will go well in the contract. You can have an amount that can ensure that your buyer is a good payer. The security deposit can also give you confidence that the property is in the right hands.
4. State the Purchase Price
You should also state the purchase price of the property. This is the amount that will be due from your buyer. The total purchase price can be paid in full or before the closing date. If your buyer has to pay in installments, they need to have a mortgage or financing. If there are things that are included in the sale like fixtures and appliances, you must list them in your contract. This is to avoid extra payment for all the things that can be included in the sale. It states that all these items are included in the purchase price. This way, your buyer does not have to pay more than they ought to pay.
5. Pick a Closing Date and Allocate Taxes
You should choose a day for the closing date. This is the day when the full ownership of the property will be rewarded to your buyer. Pick a good date when this thing should happen. This can also be the day when you will give the keys to the owner. Then, Both parties should negotiate about taxes. You should have an allocation plan for the taxes of the property. This is needed to comply with the laws. Both parties should also decide who will pay for the closing costs.
6. Understanding Contingencies
You must know the contingencies that you will have from the sale. This includes appraisal and home inspection. These are needed so that you can ensure a safe home for yourself. If ever one of the parties will come astray from the terms of the agreement, you should have an option for the breach of contract. You must know what to do when this thing happens. A breach of contract is not a simple thing. So, you have to give it some attention.
7. Make a Dispute Resolution and Talk about Commissions
You should also know how you can settle disputes. There should be terms that both parties can follow if ever disputes arise. This way, you can prevent the case from being brought to a court of law. You can settle everything without having any legal claims. If you have agents who helped you in having the contract, they ought to be paid a commission. You should include in the contract the payment for these people. Be sure to write a clear percentage of the money that they ought to deserve. Lastly, after finalizing the contract, you must consult a lawyer. Show the contract to the lawyer. You have to ensure that you can comply with the laws of your state. If everything looks good for the lawyer, both parties can sign the contract.
Should I notarize the house sale contract?
No, the house sale contract does not need to be notarized. It is considered valid in the county records.
Can a house sale contract be terminated?
Yes, a house sale contract can be terminated. To make things easier, you should include termination as one of the components of your contract. This way, you will not experience any hassles when you want to terminate the contract.
Moving to the point of having a house sale contract can be a relief for the buyer. After the long process of buying or selling a new home, the buyer or seller can finally have the chance to transfer the ownership of the property to the other party. So, you have to be knowledgeable about having this contract when you want to buy a new home. Should you need a template for a house sale contract, this post has 10+ SAMPLE House Sale Contracts in PDF | MS Word. Download now!