Sponsors
Real estate selling involves lots of paperwork right from the start of the transaction. A primary legal form is the purchase agreement, also known as a property sales or purchase contract. The main purpose of this contract is to reflect the earnest intent of a prospective buyer on a property as well as his financial capabilities.
Various concerns are stipulated in the contract. These include the amount of money or deposit required from the prospective buyer, the full names of both the seller and the intended buyer of the property, a legal description of the property as well as its location, its purchase price and terms of sale and of course both parties’ signatures.
Contingencies are also included. These may be financial, whereby a clause in the contract stipulates the conditions for a loan, or inspections, which allows the buyer to request an inspection of the property he is purchasing. This inspection may result in a contract being voided if the property has defects and the buyer’s deposit returned.
Other clauses in the contract detail the date of transfer, closing costs amounts and responsibility (these include title insurance, transfer taxes, loan origin fees and broker’s administration) as well as the closing date and seller’s responsibilities.
The closing date is usually the date when the ownership of the property passes over, unless otherwise stipulated in the contract.
Seller’s responsibilities include delivering a clear and legal title to the property, maintaining the property in its present condition until the closing date as well as the fixing of defects of the property and the guarantee that the property is rid of any personal possessions.
It is important to remember to read through this document carefully before signing and at times it may be necessary to consult a lawyer to look it over. If you are not certain as to what a clause may mean it is always safer to go over the legal document with a lawyer. They will be able to clarify any uncertainties you may have.
Everyone, selling property is also required to submit a property disclosure form, which encloses information regarding the description of the property and its legal status. It specifies the house and lot’s size, age of the house, additional renovations or damage and property tax payments. Any lawsuits regarding the property are also detailed in this form.
Another document necessary is the quitclaim deed, a waiver of rights or claims to the property. This document is legally required if the property was part of an inheritance for several siblings or if the property had more than one owner. This insures that no claim can be made to the property after the closing date.
Leave a Reply
You must be logged in to post a comment.