What Every Contract Should Have
July 30, 2012
Whether you’re writing your own contract or using a pre-printed one, every contract should have specific basic elements. Include, of course, the address of the property and contingencies, financing terms and purchase price, and closing date.
Other specific elements a contract must contain are:
Disposition of deposit: Who gets the binder/good faith money if the contract is terminated? It varies with the circumstances, such as a home inspection that does not meet the buyers satisfaction or the seller not being willing to make the necessary repairs (buyer gets the binder back) or such as the buyer not being able to be approved.
Seller’s Responsibilities: Include passing clear title of the property, maintaining the present condition until closing, making any agreed upon repairs.
What Stays: What fixtures and personal property remain after closing? Make your list written, not verbal and be specific. If you ask for the curtains for example, make sure you include the hardware that holds them up.
Final Walk Through: This is your chance to make sure the house is in order before closing. When you write the contract, it should be specific about what exactly happens should the walk through be unsatisfactory to the buyers.