Questions about real estate contracts
Before signing a contract, make sure all terms are clearly defined!
- Has the Buyer reviewed and signed the Seller Property Condition Disclosure and attached it to the contract?
- Who will be taking title to your property? Specify Buyer(s) or Corporate Name
- Is the purchase price clearly identified?
- Is the closing date clearly identified?
- Is the date of possession and terms of possession clearly indicated?
- What is the amount of the earnest money deposit and is the check attached to the contract?
- Does the Buyer have a house to sell, and if so, have you included a Sale Contingency Addendum?
- What fixtures, appliances and items will be included in your sale?
- What fixtures, appliances and items will be excluded from your sale?
- Are you required to clean or remove certain items from your property prior to closing?
- Are there any other specific contingencies? If so, what are they?
- Has the Buyer provided you with a Pre-qualification Letter?
- What type of financing is the Buyer applying for? FHA, VA, Conventional, Owner Financing?
- Are you paying any of the Buyer’s mortgage closing costs?
- How soon will the Buyer formally apply for their mortgage?
- Is a bank appraisal required and when will it be ordered?
- Will the bank require a survey of the property and who will pay for it?
- How long will it take the Buyer to receive a written a mortgage commitment from their Lender?
- Has the Buyer reviewed and accepted your property inspection report?
- Does the Buyer wish to perform any additional inspections?
- If so, when will the additional inspections be completed and who will pay for them?
- Do you need to make any repairs or escrow money for repairs prior to closing?
- If there are existing tenants in your building, have you completed the Tenancy Addendum?
- Does your contract have an attorney disapproval clause?
- Have all copies of the contract been signed and initialed where necessary?
- Do you have marketable title to your property?
- Are there any oil, gas or mineral rights agreements that should be disclosed?
- Have you forwarded your tax receipts, survey (if available), copy of the contract, deed and abstract of title to your attorney?
Once you receive a signed purchase offer with earnest money deposit, review it carefully and make sure you and the Buyer agree on all terms. Forward it immediately to your attorney or closing agent.
