Before you sign: What is a buyer’s contract? What does it take to understand a buyer’s contract?
Your real estate agent will give you a thick load of paperwork before purchasing a new home more than anyone in the world. It consists of disclosures, advisories and other contracts that are bound by the law required for real estate.
A buyer’s contract is an agreement contract defining the relationship and obligations of the buyer with the broker or real estate agent. It is basically where all the details of the transaction process are legally written to be signed into agreement. This includes the roles and obligations of the broker or real estate agent, and the buyer himself. All negotiations and exceptions are written here that are subject to agreement on both parties.
It is also advisable for the buyer to work with a lawyer before signing anything. Better safe than sorry! Understanding a buyer’s contract and real estate terms are difficult for others, especially first-time buyers. A lawyer is beneficial for you to understand every detail every step of the way.
Details such as earnest money deposits and fees should be explained in detail in understanding a buyer’s contract. This is to make sure they know what they are getting into in good faith. If the terms are not specified in detail there is a chance that the transaction can be withdrawn.
In order for this contract to be valid, there are certain requirements there is to follow:
- It should be in black and white.
As the saying goes, if it is not written, then it is not done. Legally if it is not printed, or signed on paper, it is not valid.
- Both parties should be specifically identified
Including their roles and responsibility stated in the contract.
- Identify the property and its price.
The details of the property being sold should be written in keen detail bound by the law. Ever description, ever upgrades, every fee.
every legal document should be signed by both parties of legal age when they come to an agreement with real estate. We highly suggest for you to go over the documents with a lawyer to make sure all matters of an agreement are covered.