If you’re planning to buy or sell a house, it’s essential to understand the ins and outs of real estate contracts. These legally binding agreements protect both the buyer and the seller, outlining their obligations and expectations during the transaction. However, these contracts can be confusing, leaving you feeling overwhelmed and uncertain. In this article, we’ll walk you through everything you need to know about real estate contracts when buying or selling a house in Cherokee County.
Overview of Real Estate Contracts
Real estate contracts are legally binding agreements between two or more parties involved in the purchase or sale of real estate. These contracts outline the terms and conditions of the transaction, including the purchase price, closing date, and contingencies.
What a Real Estate Contract Is
A real estate contract is a legal document that outlines the expectations and obligations of both the buyer and the seller. This agreement covers various terms, such as financing, home inspection, sale of existing homes, seller assistance, fixture and appliances, and closing date.
How These Contracts Work
The process of drawing up and finalizing real estate contracts typically involves three main steps:
- The home buyer’s agent creates an official offer form and submits it to the seller. This initial offer outlines the parties involved, property details, purchase price offer, earnest money deposit, closing costs, and closing dates.
- Upon receipt of the initial offer, the seller will accept, reject, or counter it. A counteroffer may include proposed modifications or negotiated terms such as purchase price, closing costs, contingencies, and other relevant terms.
- After both parties accept and sign the contract, it becomes legally binding.
Creating Real Estate Contracts
Buyer’s agents typically prepare real estate contracts. However, if they are not licensed to practice law, a real estate attorney can create the contract. While there are templates available online to create your own real estate contract, it’s advisable to consult a real estate professional to ensure a smooth deal.
Important Elements of Real Estate Contracts
Several important elements are included in real estate contracts, including:
Financial Terms
Unless you can make a cash offer, you will need to obtain financing to buy a house. The contract should be contingent on your getting financing at a specified interest rate and type of loan.
Areas of Seller Assistance
If you want the seller to pay for part or all of your closing costs, you must include this in your offer.
Payment of Closing Costs
The agreement should specify which party is responsible for each common fee associated with the home purchase, such as escrow fees, title search fees, title insurance, notary fees, recording fees, transfer tax, and other relevant fees.
Home-Inspection Contingency
Contracts often include a clause stating that the sale is contingent on the property passing a home inspection. This clause allows you to walk away from the deal if the inspection reveals significant and/or expensive-to-repair flaws in the structure’s condition.
Fixtures/Appliances
If you want to keep appliances like the refrigerator and washing machine, you must specify this in the contract.
Closing Date
The contract should specify the closing date, which is typically 30, 45, or 60 days. However, the buyer and/or seller may have reasons for a longer or shorter timeframe.
Home-Sale Contingency
If you need to sell your existing home to purchase the new property, you should make your offer contingent on the sale of your current home. You should also provide a reasonable timeframe for selling your old home, such as 30 or 60 days.
In Conclusion
Real estate contracts can be confusing, but understanding the basics can help you feel more confident and informed during the buying or selling process. Ensure that you seek guidance
Your Source for Assistance with Real Estate Contracts in Atlanta
What we’ve laid out here are the basics of real estate contracts, but it can and often does get a lot more involved and complex. And if you don’t make sure you cover everything, you could be opening yourself up to legal ramifications. That’s why it’s so important for both buyers and sellers to work closely with an experienced Atlanta agent. And we have the agents with the knowledge and expertise to help you get it right. If you’re buying or selling a house in Atlanta and don’t want to have any worries about real estate contracts, contact us today at 770-280-4560.
FAQ
Q: What is the article about?
A: The article is about real estate contracts and what buyers and sellers need to know about them when buying or selling a house in Cherokee County.
Q: Why are real estate contracts important?
A: Real estate contracts are important because they are legally binding documents that outline the expectations and obligations for both the buyer and the seller, providing legal safeguards to protect both parties during the buying or selling process.
Q: How do real estate contracts work?
A: The process of drawing up and finalizing a real estate contract typically involves three main steps: the buyer’s agent creates an offer form and submits it to the seller, the seller accepts, rejects, or counters the offer, and once both parties accept and sign the contract, it becomes a legally binding document.
Q: Who usually prepares real estate contracts?
A: Buyer’s agents often prepare real estate contracts, but if they are not licensed to practice law, the buyer can have a contract drawn up by a real estate attorney. It is also possible to find templates online to draw up your own real estate contract, but it is advised to consult a real estate professional to ensure a smooth deal.
Q: What are some important elements of real estate contracts?
A: Some important elements of real estate contracts include financial terms, areas of seller assistance, payment of closing costs, home inspection contingency, fixtures/appliances, and closing date.
Q: What is a home-sale contingency?
A: A home-sale contingency is a clause that allows a buyer who is an existing homeowner to make their purchase offer contingent upon the sale of their current home. They should also provide a reasonable time frame for selling their old home, such as 30 or 60 days.
Q: How can I learn more about real estate contracts in Cherokee County?
A: You can consult a Cherokee County agent at 770-280-4560 to learn more about real estate contracts and ensure a smooth deal.