Real
estate contracts or real
estate agreements
play a very important role in maintaining buyer seller relationship. Contract conditions
are the pillars on which all of the real estate deals are finalized. When the
parties are going to sign a contract or agreement, it is essential that the
conditions are checked thrice. Buyer as well as sellers must design the
conditions in accordance with the State laws.
Dean
Graziosi explains that all States have different laws governing real estate
deals taking place in the area. For example, the contract for deed that is so
popular among realtors is not valid among some States. If in such cases, there
is a dispute the court will rule out case stating that the deal is not void in
the State. There are other similar cases.
When
asked how one can avoid such cases, Dean explained that the parties must
consult attorney journals before signing the agreement. Dean Graziosi is a
renowned real
estate millionaire.
He is a successful entrepreneur who runs his infomercial series and helps
novice people achieve their dreams. Dean Graziosi has also written bestselling
books. These books contain information regarding real estate as well as
regarding motor sales.
Dean
says that the conditions and clauses of the agreement must be made after
thorough research and study. It is essential to contact a legal attorney who
can better suggest if conditions are according to the legal requirements or
not.
Let us
have a look on all important terms and conditions that must be included in real
estate contracts and agreements.
Financial Issues:
In most
cases, the contract is demolished or the disputes among parties arise due to
unconsidered and unsettled financial issues.
For Buyer: When you are going to sign the agreement with your seller do
not forget considering your financial issues. If you are going to obtain loan
you must make the conditions according to the installments you have to pay.
Never go for a 7.5% installment if your limit is 7%. If you want the seller to
pay for closing costs discuss before finalizing the deal. Never leave all these
issues on last minute, never take any money matter for-granted. If you think
that “It’s obvious he (seller) is going to pay the closing price why should I
bother”, think again.
For Seller: Always discuss money matters first. Make sure that the
buyer is disclosing all of the information fairly. Sometimes buyer believes
that you are going to pay the closing price. If the buyer is willing to
negotiate the terms, you must make the conditions as per your financial
consitions. Never allow the buyer pursue you on some condition that you do not
want to include in the contract.
Closing costs:
Both,
buyer as well seller, in collaboration with their attorney decide who is going
to pay closing costs of the deal. The closing costs include common fees
associated with home selling and purchase, escrow fees, title search fees, notary,
title insurance, transfer fees, taxes etc. The closing rates are also set
according to the rules of the area, for example in some regions it is customary
for sellers, whereas in others buyer has to pay closing costs.
Fixtures and Appliances:
Buyer: If you want any appliance like
furniture, refrigerator, oven etc. you must include the name of appliances in
the contract. Do not rely on any verbal agreement.
Seller: If the buyer wants to purchase some
appliances with the house, the name of appliances must be included in the
written form in the contract. This will curb any claim for extra appliances
made by the buyer.
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