Q:

What is some important information on a real estate sales contract?

A:

Quick Answer

Finance terms, designation of closing costs, home inspection details, assignation of fixtures and appliances, and closing date are important details in a real estate contract. Both buyers and sellers should read contracts carefully to ensure important details are included rather than relying solely on their realtors.

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Full Answer

Typically, people purchase homes by obtaining mortgages, and it is important to specify the terms of buyers' loans under which they will finalize the purchases. If they cannot afford loans above a certain interest rate, a higher rate should not be included in the contracts.

The contract should also specify the type of mortgage the buyer obtains if that loan is the only way he can finance the home. The contract must also spell out who is paying closing costs such as escrow fees, title search fees, transfer tax and title insurance, as customs vary from location to location.

Real estate contracts that include purchases of homes should specify whether offers are contingent on the outcome of home inspections. If a buyer cannot afford large expenses such as replacing the roof, it should be clear in the contract that he can back out of the purchase if the inspection reveals that a new roof is necessary. People signing real estate contracts should also be sure that appliances are included in the sales prices of homes if they want them to stay with the houses. Additionally, buyers and sellers should ensure that closing dates are appropriate to their needs.

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