Real Estate Contracts - What You Need to Include

Real estate contracts are vital to the selling of property. Signed and written documents are important to legitimize these deals between two parties. One important forms involved is the real estate contract also known as purchase agreement or sales contract.

A real estate contract is needed in the sale or purchase of a home and must be entered into by the parties involved voluntarily. In some cases, the purchase agreement presented by a homebuyer to a seller can already serve as the contract. In the United States, the Statute of Frauds requires that real estate contracts should be in writing to be considered enforceable. However, as real estate laws vary from one state to another, this form may also differ in some states.

The information contained in a contract pertains mostly to a piece of real estate property but it also includes the names of the home seller and the buyer. If you’re in the process of selling your home and are not sure what to include in a contract, it’s best that you consult a lawyer who specializes in real estate to help you with this concern. If you plan to get the services of real estate agent, your agent will take charge of preparing this document.

Specifically, a contract identifies the property involved. Details should include a legal description of the house and the exact address.

The full name of the seller and the buyer or the principals should be on the document. As principals, they are distinguished from the real estate agents who serve as representatives during the negotiation process. The signatures of the two parties should also appear on the contract to be considered legal.

Being a sales transaction, the purchase price of the property must be stated.

Contingencies are normally included in real estate contracts. One of the most common pertains to mortgage calling for the buyer to obtain a loan within a specific timeframe after the contract signing. Home inspection is another contingency required by most buyers. This is to ensure that the property is in good condition without material defects before closing. In some cases, the home buyer may also include an appraisal contingency to ascertain the property’s fair market value. This is useful to the buyer considering that lenders refuse to approve a loan more than a home’s appraised value.

The closing date is usually also specified. This refers to the date when ownership of the property is transferred from the seller to the buyer. However, a separate date may be stated as to the transfer of possession of the house or the day when the owner has to vacate the house.
It’s ideal as well that the closing costs and the parties responsible for paying them be written in the contract. Sellers often shoulder most of these costs as an incentive to their prospective buyer. However, both parties can also agree to split the costs between them.

Notarization is not needed for a real estate contract. What usually requires notarization is only a seller’s signature on a deed as required by many recording offices.

Now that you know the details in a contract, be sure to read and understand carefully all the terms and conditions before signing the document.

Visit: http://www.legalhomeforms.com to view sample real estate contracts and forms.

Who Needs To Have A Lead Based Paint Disclosure?

Selling a residential property in the U.S. entails a lot of paperwork. These include a counter offer, real estate contracts, appraisal report, home warranty, title of the property and disclosure forms among many others. Disclosure forms are submitted in the initial stage of the sales process usually after a seller receives an offer to purchase real estate from a potential buyer.

Disclosures are required by real estate law and are seen as protection for home buyers. Submitting disclosure forms beforehand also gives a good impression to buyers that the seller is honest enough to inform them of the condition of the home. Disclosures are basically of two types – those concerning the physical condition of the home and those that pertain to the use of lead-based paint.

Section 1018 of the Residential Lead-Based Paint Hazard Reduction Act of 1992 called for the Housing and Urban Development (HUD) and Environment Protection Agency (EPA) to require the disclosure of lead-based paint and its possible hazards before the sale or lease of homes built before 1978.

Types of housing covered in this law are private and public housing, those owned by the Federal government and those receiving Federal assistance. This rule took effect on September 6, 1996 for real estate transactions that involve owners of more than four homes. Homeowners with one to four residential properties were covered beginning December 6, 1996.

This is vital because lead-based paint is hazardous to people’s health and a home that used this kind of paint has a potential of causing health problems to occupants. Lead is a toxic metal that can to health issues notably in children. When absorbed by the body, lead can affect the brain, kidneys, nerves and blood. It can also lead to problems in behavior, learning and in worse cases, death.

Specifically, the disclosure should reveal any information on the use of lead-based paint as well as its location in the house and its adverse effects. It should also be accompanied by a pamphlet entitled "Protect Your Family From Lead In Your Home" approved by the EPA that contains information on how to identify and control lead-based paint hazards to avoid health problems.
Some steps homeowners can do to avoid being contaminated include mopping floors, vacuuming carpets and upholstery weekly to remove dust, wiping down flat surfaces and picking up loose paint chips with a paper towel and throwing them away.

Home sellers and landlords are also required to give any records or reports on lead-based paint and its hazards available to them. In addition to the disclosure form, they should likewise provide an attachment to the sales contract or lease agreement specifying a lead warning statement confirming that they have complied with the necessary notification requirements. This attachment must be signed by the sellers and buyers or the landlords and tenants and should bear the date they affixed their signatures.

A 10-day period is normally given to home buyers to conduct a paint inspection. The time period, however, may be shortened or lengthened depending on the agreement of the parties which must be in writing. Buyers can also opt to waive the inspection if they wish.

Always be cautious when buying a home especially if it’s constructed before 1978. Doing your homework before making a final decision is very vital. Download a lead based paint disclosure by visiting: http://www.legalhomeforms.com/lead-based-paint-disclosure.htm