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Other details that must be included are:

Title and escrow insurance company.

The contract must include information about the buyer and seller's title company. The purchase and sale will include an agreement that the seller will provide a clear or marketable title ownership to the buyer.

Identification information.

Not only does the purchase and sale agreement state who is buying and who is selling, but they must include an address for both and information on identification for both the buyer's agent and the listing agent.

The closing costs.Anatomy of a purchase and sale contract

Unless otherwise stated in an addendum, closing costs are expected to be paid as follows: the seller must pay all existing loans, liens, and related costs affecting the sale of the property. The seller must compensate any listing agent on their commission, complete any leased items that remain on the property and a title insurance policy. There are other details to various closing costs that may also be included. The buyer must pay transfer fees, deed of trust recording fees, association transfer fees, homeowners insurance, buyers settlements fees and any buyers loan related or lender required expenses.

Taxes and assessments. Also included final closing should be the current year's property taxes, any existing tenant leases or rents, association or maintenance fees and any other fees that should be prorated as of the date of closing. This can get rather confusing so it's important to have knowledgeable escrow and real estate agents to differentiate between all of these fees so you understand exactly what you are paying at the time of closing.

Contingencies.

Even though these are the basics to a purchase and sale agreement, most offers will also include any contingencies. This could be an inspection contingency, financing contingency, title contingency, appraisal contingency or a home sale contingency. These are conditions that must be met in order for the sale to close. Most buyers will have an inspection completed, verify financing, have the home appraised, and get title insurance. These are the most standard contingencies. If the buyer needs to sell their own home before completing the sale, that would be a home sale contingency. In hot sellers markets they are rarely accepted not uncommon.

Additional addendum's. An addendum, also known as a writer, is any additional request from the buyer to the seller that is not already included in the original purchase and sale agreement. This could be a variety of things so if you're wondering how to add certain details to a purchase and sale agreement, this is where an addendum would come into play.

This might sound confusing and there are a lot of factors to a purchase and sale contract but there are all important in protecting the agents, escrow and title officers, loan officers and of course, the buyer and seller. If you have questions on any of these details please contact us at any time. Want to make sure that our buyers and sellers understand the logistics and specifics to a purchase and sale contract. If there's anything you don't understand throughout the process don't hesitate to ask. We want you to feel confident about your purchase and satisfied with the results.