A major financial decision with significant financial and legal repercussions is buying or selling a home. Since there must be legal protections in place to protect both buyers and sellers, legally binding contracts are a crucial component of the process. However, a layperson may find these contracts to be completely unclear. To help you feel more secure whether purchasing or selling, we aim to clear up some of the misconceptions. Below, you’ll discover all you need to know about real estate contracts when buying or selling a house in Harrisburg, PA.
Overview of Real Estate Contracts
So let’s start with a summary of real estate contracts – the fundamentals, or what people in Harrisburg, PA who are buying or selling a home need to know.
What a Real Estate Contract Is
In summary, such a contract “is a legally enforceable document between two or more parties participating in a buy and sale, exchange or transfer of real estate.” A well-written contract spells forth the obligations and expectations of the buyer and the seller. In general, terms of financing, seller assistance, home inspection, fixtures and appliances, closing date, sale of existing home, etc. are included in a real estate contract.
How These Contracts Work
The three main steps in the drawing up and finalizing of real estate contracts are . . .
- The agent for the home buyer draughts an official offer letter and delivers it to the seller. This first offer will include a description of the parties involved, information on the property, the purchase price, earnest money deposit, closing expenses, and the dates for closure.
- The vendor will either accept, reject, or counter this initial offer after receiving it. “Proposed revisions or negotiated terms, such as the purchase price, closing costs, contingencies, etc.” may be included in a counteroffer.
- The contract only becomes enforceable once it has been acknowledged and signed by both parties (the buyer and seller).
Creating Real Estate Contracts
If they have a legal licence, buyer’s agents frequently draught real estate contracts. If not, the buyer can hire a real estate lawyer to draught a contract.
“Templates for creating your own real estate contract are available online. To ensure a seamless transaction, it is suggested to talk to a real estate expert. You can speak with a representative from Harrisburg, PA at 717-489-2849 to learn more about this.
Important Elements of Real Estate Contracts
The important elements of real estate contracts are as follows . . .
You will need a mortgage to purchase a home unless you have enough cash on hand to make a cash offer. As a result, as the buyer, you will want the contract to be conditional on you receiving financing at a specific interest rate (and sometimes on obtaining a certain type of loan).
Areas of Seller Assistance
“You must specifically request it in your offer if you want the seller to cover any or all of your closing costs, for example. Closing costs are often additional fees both buyers and sellers must pay to complete a real estate transaction. You are requesting the seller to pay some of these extra costs when you submit a concession for a seller help.”
Payment of Closing Costs
“The contract should state who is responsible for paying each of the typical closing costs, such as escrow charges, title search fees, title insurance, notary fees, recording fees, transfer tax, and so on.”
Contracts frequently contain language stating that the sale is subject to the house passing a home inspection. “This clause permits you to walk away from the transaction if a house inspection reveals substantial and/or expensive-to-repair defects in the condition of the structure,” reads the clause for the buyer.
The real estate contract must specifically mention your want to retain appliances like the refrigerator and washer and dryer. Simply put, you cannot rely just on a verbal agreement.
The typical closing times are 30, 45, or 60 days. But a longer or shorter duration can be necessary for the buyer or seller, and this must also be specified in the contract.
“Make your purchase offer contingent upon the sale of your present home if you already own a home and need the proceeds from its sale to acquire the new property. A fair time window, such as 30 or 60 days, should be provided for you to sell your previous residence.”
Your Source for Assistance with Real Estate Contracts in Harrisburg, PA
The fundamentals of real estate contracts have been described here, but they can and frequently do become far more intricate and complicated. And if you don’t check to see that you’ve covered everything, you risk exposing yourself to legal repercussions. That’s why it’s so crucial for both buyers and sellers to work closely with an experienced Harrisburg, PA agent. And we have the agents that are knowledgeable and skilled to support you in making the proper decision. Contact us right away at 717-489-2849 if you’re buying or selling a home in Harrisburg, PA and don’t want to worry about real estate contracts.