Necessary Inclusions in a Real Estate Contract
March 31, 2021
Real estate purchasers in Florida are often at a loss for understanding what conditions of the sale should be established in writing and included in the deal. Real estate transfers can appear as relatively simple transactions, but the truth is that they can be very complicated when misunderstandings exist between contracting agents. Although there are multiple details that should be included, there are three primary components that must be spelled out in writing for all parties.
Any real estate sales agreement will typically include a financing institution of some type even when the purchaser is making a significant down payment. Each party to the agreement should be listed with a designated purchase price and interest rate included in the mortgage. In addition, all real estate agents should be identified as well.
Home inspection report
All real estate structures are sold contingent on the building or home passing an inspection that must be completed prior to finalizing the transfer. A third-party inspection team can evaluate the home and check for items such as potential radon gas issues that cannot be noticed without special equipment. All structures must be up to code with any acceptable defects being identified to avoid any potential litigation for unforeseen problems.
Closing cost responsibility
One of the primary functions in any real estate transaction is performed by the attorney handling the closing. The closing designates when a sale goes to escrow and includes when payment will be made and official control is transferred to the new owners. Not all sales will go to escrow, but many do and it carries both advantages and disadvantages.
There are indeed multiple issues that must be stipulated in any comprehensive real estate contract, and having an experienced Florida real estate attorney is vital. Real estate deals can fall through when all potential issues are not addressed firsthand, and the ensuing litigation can be costly.