When it comes to buying a house, there are few things as important as the house contract. This legal document outlines all the details of the transaction between the buyer and seller and sets out the terms and conditions of the sale. As a savvy homebuyer, it`s important to know what to look out for in a house contract. Here are some things you should keep in mind.
1. Price and Payment Terms
The price of the home is the most important aspect of the contract, but there are other payment terms you need to consider. For example, if you`re taking out a mortgage, you`ll need to ensure that the contract includes a clause that stipulates that the sale is contingent on your obtaining financing. You`ll also want to be clear on when exactly your down payment is due and what happens to it if the deal falls through.
2. Property Details
The contract should include a detailed description of the property, including its size, location, and condition. Make sure you have a clear understanding of what you`re getting, especially if you`re purchasing a home that`s still under construction. You`ll also want to check that the seller has the right to sell the property and that there are no liens or other legal issues that might prevent the sale from going through.
3. Closing and Occupancy Dates
The contract should outline the closing date, which is the day on which the sale will be finalized and the keys will be handed over. You`ll also want to make sure you have a clear understanding of when you can move in and take possession of the property. If there are any delays or issues, you`ll want to be clear on what your rights and options are.
4. Contingencies
Contingencies are conditions that need to be met in order for the sale to go through. For example, you might include a contingency that the sale is subject to a satisfactory home inspection. Other common contingencies include sale of your current home, approval of financing, and the ability to obtain homeowner`s insurance. Make sure you`re clear on what contingencies are included and what happens if they`re not met.
5. Disclosures
The seller is required to disclose any known issues or defects with the property. These might include problems with the plumbing, electrical system, or foundation, or issues with pests or environmental hazards. Make sure the contract includes a clause that requires the seller to disclose any known issues, and be sure to review any disclosures carefully.
In summary, when reviewing a house contract, be sure to pay close attention to the price and payment terms, property details, closing and occupancy dates, contingencies, and disclosures. By doing so, you can protect yourself and ensure that the transaction goes smoothly.