Douglas Tucker, RE/MAX realtor in Morristown, NJ, highlights the important parts of a real estate contract for a home purchase or sale.
A real estate contract is in force when it is executed and delivered to both the seller and the buyer.A contract without the signature of a seller is simply an offer to purchase a home.
Purchaser and Seller
The real estate contract has the full name of the purchaser(s) and their address, followed by the full name of the seller or the owner of the estate if the seller is deceased.The property address and block and lot number will also be recorded, as well as the county the home is located in.
Amount Offered to Purchase
The first page of the contract will specify the purchase price of the home.The buyer will need to have a down payment upon signing of the contract, and a certain number of days after attorney review.An additional deposit will be given at closing.
Mortgage
The mortgage amount will be the amount after the deposits are subtracted from the purchase price.If there is no mortgage, it is considered an “all cash” deal, and will require proof of bank funds.When the contract is presented to the seller, it should have with it a mortgage pre-approval from a reputable lender.
Dates
There are important dates in the contract – mortgage commitment date, closing date, date the contract is signed by both parties.Other dates that are important are dates in which inspections needs to be done, and inspection results need to be addressed by the seller.
Deed
The type of deed should be filled in on the contract.
Inspections
A purchaser should have a home inspection when they buy a home.They should also have an oil tank inspection if there is an oil tank, a septic inspection, well inspection, termite or other wood-destroying insect inspection, and a survey of the premises.
Property Use
In a residential home purchase, the property will be used as a single family home and should say so.
Exclusions
Exclusions are items that are considered to be part of real property but the seller would like to take with them.Some common exclusion would be a special chandelier, and can even be a bush planted in the ground.If the exclusion is a light fixture, a substitute one would need to be installed before closing.
Inclusions
Items that are normally included in a purchase of real property would be the stove, built-in microwave, and dishwasher.Appliances such as washer, dryer, and refrigerator are not considered real property because they are not affixed to the property.Many smart realtors keep appliances to be used as negotiating tools.
After your contract is signed by the purchaser and the seller, it should be delivered either in person, by fax, or by mail to both parties.A copy should also be sent to the attorneys and the buyer’s mortgage company.It is imperative both parties get a contract to their attorneys within three business days.The attorney review period is the three business day time period after the contract is delivered.Failure to get the contract to an attorney will forfeit the party’s rights to change the contract.
If you are looking to purchase a home, call Broker-Associate Douglas Tucker of RE/MAX Properties Unlimited.Agent Tucker will tell you how to make a contract very attractive to a seller and let your offer get noticed.Contact Doug Tucker at 973-769-1563 or use email.
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