The Real Estate Contract – Unpacked

Buying a home is not just about finding the right place, it requires a high level of expertise to ensure you procure your dream home without any glitches or problems.

When we find your new home I will be constructing a legal agreement between you and a seller of a property. Trusting we have made the wise decision to enter into a representation agreement to ensure my fiduciary duty is to you alone, my expertise will be targeted at achieving you the best outcome.

There is a great deal of expertise that goes into writing just the right contract for you, and at its core, we are working with five key elements that must be clearly addressed – and each element impacts the other like a perfectly constructed puzzle. It is common to be focused on price, after all, that seems to be the bottom line for anyone’s pocketbook!  But, the real financial impact to you is a result of how these five elements are structured and defined.  A better price does not always leave more money in your pocket.

Taking the time to discuss these five elements with me as we construct or review an offer is extremely important.  Too often I have seen people walk from the table or walk away from a property as all they focussed on was the number on the paper.  And far too often they lost a great deal that would have met their goals.

An offer is a complex process.  Let’s talk through all the elements carefully and consider how to orchestrate all of them in concert to reach your goal.

I ensure this is done right to protect your interests and ensure you have no problems in securing and closing the deal. 

THE FIVE ELEMENTS OF A REAL ESTATE CONTRACT

  1. Price: The amount of money that the buyer pays to the seller. It should reflect the market value and be acceptable to both parties.
  2. Term: The duration of the contract, from signing to closing. It should be long enough to complete the obligations and realistic to avoid delays or extensions.
  3. Dates: The deadlines that the buyer and the seller must meet, such as inspection, financing, appraisal, and closing. They should be clearly stated and agreed upon.
  4. Inclusions and Exclusions: The items that are included or excluded in the sale, such as furniture, appliances, fixtures, or land. They should be specified in detail and consistent with what was advertised or shown.
  5. Contingencies: The conditions that must be met before the contract is finalized, such as financing, inspection, appraisal, title, or sale. They are usually in favour of the buyer, who can cancel or modify the contract if they are not satisfied.

A well-written contract can protect the interests of both parties and avoid potential disputes or lawsuits.

Good news, I have all of this and more looked after for you!

If you have any questions or need any assistance with your real estate needs, please feel free to contact me at any time at 647-230-2068.