A residential purchase and sales agreement is a legally binding document that outlines the terms and conditions of a real estate transaction between a buyer and a seller. When buying or selling a residential property, it is crucial to carefully review and understand the terms of the agreement before signing it. Here are some key things to look out for in a residential purchase and sales agreement:
Purchase price and payment terms: The purchase price is one of the most important terms in the agreement, as it defines the amount that the buyer is agreeing to pay for the property. Make sure the purchase price is clearly stated and that you understand the payment terms, including any deposit or down payment required, and the payment schedule.
Property description: The agreement should include a detailed description of the property, including its address, lot size, and any improvements or fixtures that are included in the sale. Make sure this description matches the property you are intending to buy.
Contingencies: Contingencies are conditions that must be met before the sale can be finalized. Common contingencies include the buyer obtaining financing or the property passing a home inspection. Make sure you understand any contingencies in the agreement and the deadline for meeting them.
Closing costs: Closing costs are fees and expenses associated with the transfer of the property. Make sure you understand who is responsible for paying these costs and how much they will be.
Disclosures: Sellers are required to disclose certain information about the property, such as any known defects or environmental hazards. Make sure you review all disclosures carefully and understand any potential issues that may affect the property.
Dispute resolution: The agreement should include provisions for resolving disputes that may arise during the transaction or after the sale is complete. Make sure you understand the dispute resolution process and any limitations on your ability to pursue legal action.
Closing date: The closing date is the date on which the sale is finalized and the buyer takes possession of the property. Make sure the closing date is realistic and that you understand what is required of you to ensure the sale can close on time.
Overall, it is important to carefully review and understand all of the terms and conditions of a residential purchase and sales agreement before signing it. If you have any questions or concerns, it is a good idea to consult with a real estate attorney who can provide guidance and advice.
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