It is normal to feel excited when looking to buy a new home. Especially for first-time home buyers, the process of vetting through options can be fun, but they may also be vulnerable to pitfalls. After choosing a property, the following steps typically involve distinct types of paperwork, which can be confusing and intimidating. One of these documents is the real estate contract, which outlines the sale’s terms and conditions as well as the financial details of the transaction.
The information in this contract could be standard, but knowing what it should contain can be crucial. This agreement’s content can vary based on the circumstances, but the basics are vital, including the following:
- Financing arrangement — Most homebuyers take out mortgages to fund the sale, making financial information significant. In addition to mortgage details, the document should include contingencies, interest rates, deposits, and the consequences of not receiving approval for the loan.
- Seller obligations — The contract could indicate that the seller would cover part of the costs, such as during closing. If so, the division of expenses between them and the buyer should be in the contract.
- Home inspection conditions — Conducting an inspection before closing the sale is typical. In addition, there should be a clause allowing the buyer to back out if they discover any deal-breaker issues in the property.
- Inclusions and timelines —The real estate contract can include information about appliances and furniture that come with the property. It should also include timelines, such as the closing date and other vital deadlines.
This contract can also include details about the buyer’s previous home if they are not first-time owners, mainly if they plan to sell it to fund the sale.
Keeping the sale legally sound
Real estate purchases are often complex because of the paperwork needed to keep them legally sound. From basic contracts to other documents necessary for the mortgage, you may find them challenging to manage alone. When in doubt, consider seeking legal counsel when buying a new home. Experienced insight and guidance can help you with each transaction or requirement of the process, no matter what issue arises along the way.