In real estate, a sales contract is a contract between a buyer who wants to buy a house or other land and a seller who owns and wishes to sell this property. A real estate purchase contract is usually offered by a buyer and is subject to the seller`s acceptance of the terms. Earnest Money Deposit: A serious money deposit is a deposit that shows the buyer`s good faith and obligation to continue buying the property. In return for the buyer who makes a serious deposit of money, the seller removes the property from the market. At the conclusion of the purchase, the deposit of the money is credited with the purchase price. If the contract is terminated under the terms of the contract, the deposit of money is normally refunded to the buyer. Residential sales contracts generally contain promises and provisions that guarantee the condition of a property. Many states legally require sellers to deivate explicit information about the condition of a property. In states where this is necessary and where a seller deliberately conceals such information, they may be prosecuted for fraud. Below is a general overview of the home purchase process: You should use this agreement if a) you are a potential buyer or seller of real estate, (b) you want to define the legal rights of each party to the sale and (c) define the respective obligations of each party before the transfer of the property. Lead-Based Paint Disclosure – Transmits information to buyers about the toxic paint that may have been used on a property. Homeowners built before 1978 must make this disclosure available to buyers before signing a sales contract. If you do not have a real estate purchase agreement, you and the other party do not have a clear understanding of your rights, potential risks and the potential economic impact of these potential risks.
Without an agreement, it will be much more difficult to negotiate the extent of each party`s responsibility and enforce your legal rights. A real estate purchase agreement does not transfer the title of a house, building or land. Instead, it provides a framework for each party`s rights and duties before the title can be returned. After seeing House Hunters on HGTV for years, it`s your turn to find the perfect home. Or you bought a dilapidated house, poured your money and sweat into the repair, and now you`re ready to list it for sale.