In certain real estate transactions, you may find yourself drafting your own home sale contract as opposed to someone else creating it for you. This can happen when you are buying or selling a home without a real estate agent or buying a property directly from the seller.
In these instances, it is important to include specific elements in the contract to reduce problems later.
According to FindLaw, a home sale contract must include the following elements:
- The full, legal names of both the buyer and the seller
- The property address and a description of the property
- The amount you are buying or selling the property for
- Signatures from all parties involved
Including these elements in your contract ensure that it is both legal and binding.
While you can still sign a contract that has only the bare-bones requirements, it is often a good idea to add other clauses and specifics. For example, including financing, contingency and inspection clauses can protect both parties in the future. Federal law also requires homeowners to disclose certain risks, such as potential lead paint exposure.
It is a good idea to add specifics to the home sale contract that detail: the date that both parties sign the contract, the date that the buyer can take over the property, the names of any agents involved in the transaction and any money that is put towards the purchase. This list is not exhaustive.
If you have any questions about the validity of your home sale contract, it is a good idea to have a professional look over the paper before you sign it.