You should never sign a contract without knowing what it says—especially when it is a real estate contract. But unless you’re a lawyer, it can be difficult to understand some of the terms that are typically found within a Goldsmith real estate contract. Make sure you know what you’re agreeing to by learning these terms:
Every real estate contract will include information on the closing date, which is the date that you will officially “close” the deal. This is the final step in the process of buying a home and the point where the ownership of the home will be transferred from the seller to the buyer.
Some real estate contracts may contain contingencies, which are conditions that must be met for the deal to go through. If one party fails to meet a contingency, the other party can back out of the deal.
What contingencies will you typically find in a real estate contract? The buyer may include a contingency that he will only move forward with purchasing the home if there are no issues with the inspection. The buyer could also include a contingency that states the seller must make certain repairs before the closing date. There are many different contingencies that can be included in a real estate contract, so make sure you go over each and every one with your agent. Learn about home sale contingencies: what buyers and sellers need to know
There are certain things that a seller must tell a buyer before he takes ownership of the home. For example, anyone who is selling a home that was built prior to 1978 must include a disclosure that informs the buyer of any lead-based paint or lead hazards in the house. It is a violation of federal law to not provide this disclosure or to include inaccurate information on it. Make sure you work with your real estate agent to get a better idea of which disclosures should be included within the contract, and what each of them says.
Buyers who are planning on financing the home will need to have it appraised before closing. During an appraisal, a professional will visit the home and estimate its value. If the appraised value is not close to the listing price of the home, the lender may not want to move forward with the deal.
You may see the term “effective date” used in various places throughout the contract. This refers to the date that the last party signed the contract. For example, the contract may say that the buyer has 14 days from the effective date to schedule an appraisal. This means you must schedule an appraisal within 14 days of the last person signing the contract in order to comply with the terms of the contract.
Are you ready to find your dream home in Goldsmith? If so, get in touch with the professionals. Contact Elevation Realty
to be connected to a team of experienced real estate experts ready to help you on your home buying or selling journey.