CONTRACTS
The Contract stage of the sale transaction is analogous to laying foundation for building a house. If the Contract is properly prepared, your closing will go smoothly and both the Buyer and Seller will be happy and feel good about the transaction they have concluded. The Contract MUST contain all of the agreements between the Seller and the Buyer; furnish all of the terms and conditions to be included in any purchase money note and mortgage; explicitly delineate closing costs, prepaid expenses and clearly provide who will pay each of these; clearly define and/or limit the Seller’s warranties as to the condition of the property; clearly define and/or limit the Seller’s warranties as to the condition of the property including the roof, electrical, plumbing, heating and air conditioning systems; provide for the Purchaser’s right to have an independent inspection performed; include or omit a provision for prorating taxes, insurance interest and rents; provide for disposition of the escrow account; provide for a closing date; provide for a possession date; provide for the disposition of any existing loan; deal Seller’s release or non-release of liability on the existing loan; provide for termite letter if required by lender or Purchaser; provide for disposition of surplus in escrow account; provide for “Guaranty Mortgage” if required by Seller; describe all items to be conveyed under the Contract; provide for transfer or cancellation of existing homeowners insurance; include all spouses’ names on Contract; provide for Seller’s right to continue marketing property if applicable; provide for contingency for sale of Purchaser’s existing home; and etc.

In addition the contract, many states require all sellers of residential real estate, of one to four dwelling units, to give to the purchaser prior to acceptance of a real estate purchase contract, a Residential Property Disclosure Statement, in the form provided for in said act regarding the condition of the property, including any material defects know to the owner.

The condition and requirement of each type sale and loan differ and you should utilize and complete real estate contracts WITH CAUTION AND AT YOUR OWN RISK. It is wise to utilize an experienced real estate closing attorney to assist you in preparing your Contract or at least reviewing it before signing it.
All of your rights and liabilities are irrevocable established when the Contract is signed.

CLOSING
Local custom using dictates how real estate closings are handled. In many states closings are handled by a title company while others may have the custom of using a real estate attorney to handle the closing.

Northeastpafsbo.com recommends that both parties, buyer & seller, consult with a competent real-estate attorney to handle all closing details!