The Law Offices of Thomas N. Jacobson in Riverside provides information about real estate contracts for clients who are thinking of buying or selling a home.

Contract - An Offer to Purchase a Property

A contract is a written offer to purchase a property.  A contract is not enforceable unless it has been fully executed by both the buyer and seller.

Review the Seller's Property Disclosure

Before you consider making an offer on a property and signing a contract, you should review and sign the seller’s property disclosure. The property disclosure contains information about the condition of the property and may affect the price you are offering for the home. You should provide the seller’s property disclosure to your real estate attorney along with the fully executed contract.

The Elements of a Real Estate Contract

There are elements of a contract you should understand before you sign one. The elements of a contract include:

• Full name of buyer and seller
• Property address
• Property description
• Deposit amount, made by cash or check payable to the seller’s attorney or the participating realtor’s trust account
• Type of financing (i.e., cash, conventional or FHA mortgage)
• Mortgage commitment date
• Type of deed conveying the property
• Closing date
• Inspections that will be done (home, lead paint, well, septic, etc.) and the date which they need to be done by
• The date in which the seller must respond to the inspection issues
• Items included in the sale – either fixed items (such as dishwasher and oven) and personal property that may be included (i.e., clothes washer, dryer, and refrigerator)
• Clear title – the property is to be delivered free of encumbrances
• Taxes, assessments, insurance, and utilities – these should be specified and pro-rated depending on the day of the month you are closing
• Type of use – single, multifamily, or rental property
• Condition of the property – the property should be kept in the same condition as when the contract was signed, maintained throughout the period before closing, and delivered broom clean at closing
• Code and government compliance – Smoke detectors and carbon monoxide detectors need to be installed and operating before the closing
• Breach of contract provision – the rights of either party if the other cancels the transaction without proper cause
• Realtor disclosure – includes commission paid to the participating broker, if any
• Special conditions – includes disclosures (i.e., home sale contingencies, seller concessions, if purchaser is a realtor)
• Signatures of the buyer and seller and respective spouses if married
• Date – the date the contract is signed by the buyer and seller

It is not advisable to complete and sign a real estate contract without the advice of a Riverside real estate attorney.  If you are thinking of purchasing a home, consult with the Law Offices of Thomas N. Jacobson today.  We can help you draft an iron clad contract and negotiate terms that are agreeable to you.  Call us today at 951-682-7882, or submit our quick contact web form for a free initial consultation.

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