Contract of Sale

Thursday, July 17, 2014

A contract of sale in a real estate transaction is a legal contract documenting the promise to exchange a property from seller to buyer for an agreed upon value of money. The contract is usually prepared between the buyer’s and seller’s attorneys and outlines the following:

 

  • Who the buyer and sellers are and the mentions of subject property.
  • What price was agreed on, how much of it is the buyer paying upfront, and how much is being financed.
  • Contingencies such as a mortgage commitment from the lender and repairs to be made by the seller. There is usually a stated time frame for such contingencies. 
  • List of personal moveable items agreed on by buyer and seller, e.g. Shed, pool, etc…
  • An occupancy/possession agreement outlining when the buyer will obtain possession of the home and when seller will vacate the property.
  • When the closing date will be.

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