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The Real Estate contract and application

Your real estate agent will handle the contract for you if you have one. But if you are selling your home yourself you will need to find one that is legal in your state. Under a law known as the Statute of Frauds all real estate contracts need to be in writing to be enforceable. Verbal real estate contracts and agreements aren't illegal, they just can't be enforced.

As real estate contracts differ from state to state, we do not have them on on our web site. We recommend you get one from a local office supply store or from your real estate agent.

The following however are the fundamentals that should be in any real estate contract, which must be in writing to be enforceable.

bulletThe Buyers name(s) as they want them to be shown on the deed.
bulletThe Sellers name(s)
bulletThe actual legal description of the property as found on your own deed or usually in the tax bill. (The tax bill version be be abbreviated).
bulletPersonal property to be included. This is distinct from the real property, which is attached to the home. Personal property could include a washing machine, refrigerator, furniture, paintings etc.
bulletThe use of the property. The zoning.
bulletThe purchase price and how it will be paid.
bulletFinancing terms if a condition of the contract.
bulletDownpayments, deposits and who will hold them. The terms on which they might be refunded.
bulletAcceptance date, after which the offer lapses. NOTE. The offer can be withdrawn at any time before it has been accepted.
bulletClosing date. When the buyers will take title. To include any tenants that might be remaining there if not a vacant property.
bulletRepair and condition clauses. Termite inspections. Property inspection.
bulletLead disclosure forms if applicable. (Property built before 1978).
bulletTitle warranties. What happens if clean title cannot be given.
bulletOther clauses as per one of the parties.
bulletCommission agreements, if any, how much and to whom it will be paid.
bulletSignatures of all parties.

Note that real estate contracts can be biased towards the seller, the buyer or be in the middle. For example: It may be customary for instance in your area for the seller to pay for the owner's title insurance the the borrower (buyer) to pay for the mortgage title insurance, it is not written in stone. You can negotiate on any of these items.

It is not optional to give buyers a lead based paint disclosure if your home was built before 1978. You must then also give the buyer the EPA book, "Protect your family from lead in your home." Free download from our site. Also in Spanish.

If you are intending to hold the mortgage yourself you also need:

bulletApplication forms with all the right questions to ask. And permission to get a credit report.
bulletA credit report on the borrower. We allow you to obtain a credit report on someone else, with their written permission. (Other sites only allow you to get a credit report on yourself).

Your real estate broker will handle this for you as well of course.

Please remember it is illegal (and wrong) to discriminate against home buyers on grounds of race, religion, age, handicap or familial status. (You can ask if someone has dependents, you cannot ask if they have children or their ages.) Don't ask for a lawsuit. 
You can discriminate against people for financial reasons, you can even discriminate against occupations. Some real estate investors refuse to rent to attorneys on the grounds they can sue you free if you have a disagreement. But you must be consistent.

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