How To Write A Real Estate Contract

Writing a Real Estate Contract

Once you’ve found the home you’d like to purchase, it’s time to write out a contract. The real estate purchase contract varies from location to location. If you are working with a real estate agent, he or she will probably use the standard contract that is approved by the local Board of Realtors. Buyers who are not using a real estate agent can obtain a real estate purchase contract from a local attorney.

Whether you are using a real estate agent or handling the purchase agreement on your own, these 16 major items should be included:

1. The full legal description of the property (should include street address).
2. The amount of earnest money.
3. The length of time the offer is valid.
4. The projected closing date.
5. The owner’s and seller’s name(s).
6. The names to appear on the Deed.
7. The purchase price.
8. The name of the person or agency that will be holding the earnest money.
9. The financing details.
10. A detailed description of the items each of the parties has agreed to pay for as conditions of the sale.
11. Title warranty.
12. The inspection contingency.
13. The damage clause (spells out who is responsible for any damage to the house while under contract).
14. The default statement (if buyer backs out of the deal, the seller keeps the earnest money).
15. Other stipulations or items clause (lists any verbal agreements between the buyer and seller).
16. Signatures and date.

First Time Home Buyer Guide