When making offers on properties understanding the key items of a residential sales contract is important. When we sign that offer we are committing to that contract if it is accepted – so make sure you know what you have signed up for.
The entire sales contract is important, but there are a few in particular you want to be well versed in to use them to their best purpose.
This is the most important item on the contract in my opinion
- This gives you the right to inspect the property for X number of days after our offer is accepted.
The inspection is basically our other key contingency. After the inspection, we can either renegotiate with the seller if there our items in need of repair or we can simply walk away if the property’s condition is not satisfactory.
If a buyer decides they want to exit the deal they need to provide written notice to the seller within the allocated inspection period.
The example below is what you will typically see on a sales contract. In this example a 10-day inspection period was designated. Thus, you have 10 days to inspect the property and either accept it or report any issue or the intention of dropping the deal all together.
When using a loan to purchase a property this one is a must.
Whether it’s your financial situation or the lenders rules and requirements, things can change. If for some reason you cannot secure a loan for the purchase this contingency allows you to exit the deal and get back your deposits. Without it you are at risk to lose your deposit money.
Looking at the example below you can see items are designated, such as:
- What type of loan you are procuring
- The number of days you have to secure the loan commitment
Be sure to double check the boxes marked and terms listed.
These are just two key examples
Grasping the whole contract is important, there are usually only a couple pages so it is nothing to be intimidated by.
Some other items to keep an eye out for are the sales price and timing and obligations for deposits.
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