Drafting A Real Estate Contract


If you are a first time home buyer and confused about how to go ahead with making an offer on a home that you are interested in, here is the information that can help you. Remember that, making an offer on a house is not just specifying the amount that you are willing to pay but includes other factors as well. This will save you a lot of grief and money down the road. 

Any price that you offer to the seller or the real estate agent working on the behalf of the seller should be in writing. This will cut down a lot of confusion with respect to what you meant to offer for the house. Additionally, agents need everything in writing if they want to relay that information to their clients. Many states require that the offer be in writing as well. It is easier to handle offer and counter-offer this way. Besides, the only thing you or the seller has to do is sign the documents. If there is only conversation taking place between you and the seller, then have someone draft the decision in writing. 

Officially, there is a real estate contract form that every real estate agencies use when bringing in an offer by a buyer. This form is standard and agents, buyers or sellers using it feel comfortable with the wordings used in the form. However, if you insist of using your own form, just make sure that it doesn’t create confusion. Nevertheless, using your own forms can make way for a certain level of uncertainty and distrust. Do not let this happen to you. Instead, use the standard form or ask the legal authority to draft according to your wish. For those working with a FSBO sellers, where you have to bring your own form, obtain a model contract supplied by your local department. These forms are tailored to your state laws and very easy to understand. If in doubt, ask a local attorney to make sure that the form is adhering to the local and state laws. 

Most of the matters in a real estate contract form for placing offers are standard. The form contains the name of the seller, buyer and a line that says in effect that the seller agrees to sell the property and the buyer in turn agrees to buy. The form contains a legal description of the property, home plans and price the buyer is willing to pay. All of these are in writing signed by both the parties involved. However, some states may require additional disclosures written on the contract document. It may also contain cancellation rights of buyers or sellers. 

Everything else on the contract is completely negotiable. For example, if the buyer wants the seller to pay all the closing costs, he or she may modify the contract accordingly. If certain contingencies need to be met, that can be included in the form. Whatever you want to include or omit that you think is a standard in the real estate sale can be specified in this contract form.