What is a House Sale Contract?

A house sale contract is a document that has the agreement to sell a real estate property to a buyer. Sometimes, you have to hire an agent to have your excellent 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 have to propose the conditions for the sale. 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 for 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 a good contract.

Components of a House Sale Contract

Have you seen a private 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:

Information of Parties: This is the basic information about the buyer and the seller. You have to include the name of the buyer and the seller. You should also add their contact information. Do not forget to include their contact numbers and addresses.Property Information: This is the detail about the property. You have to describe the property. You should tell what type of property it is. You should also state the address of the property. Give as much information as possible. You need to detail the property. You have to be definite.Purchase Price: This is the price that the buyer and the seller have negotiated. This is the amount that the buyer should pay the seller. The purchase price includes all the amounts that the buyer has to pay, including the deposit and any additional costs. You have to be definite in stating the purchase price. This is to avoid any dispute between the buyer and the seller.Property Taxes: This is the amount of tax that the buyer and the seller should pay. It is up to both parties to negotiate about paying the taxes. They should pay some taxes to make the property legal by the law. They cannot avoid paying this. They should pay what is due for them.Title Insurance: There should be a clause for title insurance. This is important if ever the property will have a defect. You should have insurance that will pay for your loss. If you are the buyer, you should get title insurance for your property. This way, you can be compensated if ever unexpected things happen.Fixtures and Appliances: There should also be a clause about fixtures and appliances. If ever additional things are added to the property, you must include them in the contract. This way, you know that you do not need to have additional pay for fixtures and appliances. You can be sure that these things are included in the purchase price.Financing: If ever you can never pay the purchase price in full, you should have a clause about financing. In home buying, some buyers may want to pay for houses in installments. This can be possible by house financing. The buyers can pay for the house that they have purchased through a mortgage. This way, they do not have to pay one time. This will be good for buyers who do not have enough money. They can pay their house monthly through a mortgage or financing.Representation and Warranties: These are statements given by the seller regarding the condition of the sale. The structure and composition of the property are described. To provide a warranty deed, all of this information is disclosed.Earnest Money: This is the amount that the buyer can pay the seller to prove that he or she is buying the property in good faith. It comes in the form of a security deposit. This amount has been negotiated between the buyer and the seller. If the buyer will back out from the deal, he or she can get the earnest money back.Contingencies: These are the conditions that have to be met before the sale. Some of these conditions are doing repairs or doing home inspections. Through a home inspection, the buyer can assess the actual value of the property. He or she will know if the purchase price is good enough. While repairs are important to ensure safety for the house. Before the buyer will move to the new house, he or she should ensure that it can be a safe place for his or her family.Closing Date: This is the exact date when the official transfer of the property will be given. There are terms given for the closing date. The buyer should ensure that he or she will have the full payment for the property. If the buyer has paid the purchase price one time, this will also be the time when the keys to the property will be given to him or her.Termination: There can be an option to terminate the contract. This can happen if the buyer will not pay on time or if the buyer will not be happy with the property. If one of the parties wants to back out from the deal, you must have some terms on termination. This way, you can walk away from the contract whenever you want. This can give relief to both parties if ever they will find the contract hard for them to keep.Signatures: The signatures of both parties should be included in the contract. The contract will not be complete without the signatures of both parties. Both parties should remember that they should sign the contract carefully. Their signatures should be clear and perfect.

How to Write a House Sale Contract

Do you need a house sale contract template? Are you about to create a house sale contract? 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 sample on the internet. You need a roadmap that can guide you on how you can draft a good contract. Pick the best that will be suitable for your purpose. You can find the right inspiration to choose the best template if you will just be diligent in searching.

2. Pick the Best Format

Using a good structure for your contract is advisable. Remember, it is a formal document so you have to make it look great. Choose the best font for your contract. Be sure that it will look attractive. You can do this by adding some designs to the contract. There can be many available designs on the internet that you can use. You can even use some tools to make your contract look better. You ought to make your contract look nice. Make it as presentable as possible.

3. Title the Document

Then, you have to title the document. Give a simple but good title to your document. 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. You do not have to make a long title. Just keep it simple.

4. 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 the buyer and the seller. Together with their names, write their contact information. You have to clear to whom will the contract be addressed. The name of both parties should be clear in the contract.

5. Negotiate on Earnest Money

Then, both parties have to negotiate about earnest money. This can make the seller confident that everything will go well in the contract. The seller can have an amount that can ensure that the buyer is a good payer. The security deposit can give confidence to the seller that the property is in the right hands.

6. State the Purchase Price

Then, you should state the purchase price for the property. This is the amount that will be due from the buyer. The total purchase price can be paid in full or before the closing date. If the buyer has to pay in installments, he or she needs to have a mortgage or financing.

7. List the Items That are Included in the Sale

If there are things that are included in the sale like fixtures and appliances, you must list them in the 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, the buyer does not have to pay more than he or she ought to pay.

8. Pick a Closing Date

You should choose a day for the closing date. This is the day when the full ownership of the property will be rewarded to the 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.

9. Allocate Taxes

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.

10. 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.

11. Options for Breach of Contract

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. Breach of contract is not a simple thing. So, you have to give it some attention.

12. Make a Dispute Resolution

You should 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.

13. Talk About Commissions

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.

14. Show the Contract to a Lawyer

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.

FAQs

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 a new home, the buyer can finally have the chance to transfer the ownership of the property to him or her. So, you have to be knowledgeable about having this contract when you want to buy a new home. Well, do you need a template for a house sale contract? This post has 10+ SAMPLE House Sale Contracts in PDF | MS Word. Drafting a great contract will be easy for you with the help of these templates. Download now!