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Closing the Deal: Finalizing the Sale with a Purchase Agreement or Sales Contract

Mortgage Daily

Published On: February 5, 2023

One of the most important steps in selling a house is the execution of a purchase agreement or sales contract. This contractual contract spells forth the conditions of the transaction and the obligations of both the buyer and the seller. The following are important factors to take into account while drafting a purchase agreement or sales contract:

Review the Terms of the Sale

The transaction’s parameters, such as the sale price, closing date, contingencies, and other agreed-upon terms, should be explicitly stated in the purchase agreement or sales contract. Examine the paperwork thoroughly to ensure that all of the conditions agreed upon are included and that the terms of the transaction are appropriately reflected.

Hire a Real Estate Attorney

It is strongly advised that you employ a real estate attorney to analyze the purchase agreement or sales contract if you are not dealing with a real estate agent. A lawyer can ensure that the agreement is enforceable and that your rights and interests are safeguarded.

Understand Contingencies

Contingencies are prerequisites that must be satisfied for the deal to go through. Home inspections, the need for an appraisal, and financing restrictions are examples of common contingencies. These terms must be understood and included in the purchase agreement or sales contract.

Include a Mediation Clause

A mediation clause is a condition in a purchase agreement or sales contract that mandates mediation in the case of a dispute between the parties. This provision may be an effective strategy for settling disputes and preventing expensive and drawn-out court battles.

Review and Sign the Document

It is time to sign the purchase agreement or sales contract once it has been examined and any required adjustments have been made. It’s crucial to only sign the contract after thoroughly understanding and concurring with the conditions of the transaction.

Provide a Copy to All Parties

It’s crucial to give a copy of the purchase agreement or sales contract to each party engaged in the transaction once it has been signed. This includes any real estate agents or attorneys employed during the transaction and the buyer and seller.

Follow Up on Contingencies

Any contingencies included in the purchase agreement or sales contract must be followed up. This includes arranging for house inspections, getting an appraisal, and ensuring all finance requirements are satisfied.

To sum up, signing a purchase agreement or sales contract is a crucial stage in selling a house. Review the conditions of the sale carefully, learn about eventualities, and get legal counsel if required. To guarantee a successful transaction, including a mediation clause, review and sign the contract, give a copy to each party, and take action on any contingencies.

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