Contracts for real estate purchases

| Feb 8, 2021 | Residential Real Estate Transactions |

Before someone can move forward with a real estate transaction, he or she needs to negotiate and sign a real estate contract. This document will govern the rights and responsibilities of all parties to the agreement and will ensure that there are fewer ambiguities between the parties. Individuals in Arizona and other states should keep some things in mind when negotiating real estate contracts.

Contingencies

Real estate contracts often contain certain contingencies that will void a contract if they do not occur. For instance, real estate contracts often contain a mortgage contingency that allows a purchaser to terminate a deal if he or she cannot obtain mortgage financing. A skilled real estate attorney should be familiar with all the contingencies needed in a contract to secure a client’s rights.

Closing details

Real estate contracts often include details about the real estate closing, the time when parties sign documents and convey payment to close a deal. The real estate contract usually details the time, date and location for the closing and provides that the closing can be adjourned if it cannot occur at the anticipated time.

Items excluded from sale

A real estate purchase usually entitles the buyer to appliances and other items associated with the home. However, sellers often wish to take some of these items with them when they depart their home. As a result, real estate contracts often specify the items that sellers can keep after a contract is executed.

Representations

Real estate contracts often include several representations made on behalf of the buyer and seller. This may include that the buyer has the financial means to purchase the property and that the seller does not know of any major issues involving the property to be sold. An experienced real estate attorney should know all the necessary provisions to include in a real estate contract.