Buying or selling real estate can be complicated and stressful for all parties involved. One way to ensure that the transaction goes more smoothly is for the buyer and seller to draft and sign a purchase and sale contract in advance. A purchase and sale contract is a legal document between buyer and seller that specifically outlines the terms of the sale. Once this document has been agreed upon and signed by both parties, it can be difficult to overcome later. That is why it is critical to get assistance from a Chicago real estate attorney who is experienced in helping people create a purchase and sale contract.
Making an Offer to the Seller
In the first part of your legal real estate contract, you need to list the amount you are willing to pay the seller to purchase his or her property. You also need to indicate the date of your offer, your full name, the seller’s full name and the address of the property in question. The amount you offer does not necessarily have to be the same amount the seller is asking for his or her property.
Other Details Included in Your Contract
Once you have indicated a specific price you are willing to pay for the real estate, you need to stipulate the conditions that accompany it. For example, you should indicate how long your offer is good for, how much of a deposit you are willing to put down and where the deposit will remain until the sale is finalized. The contract must include a legal description of the property, not just the physical address. For legal purposes, the seller must produce a legal title to the property to prove that he or she does indeed own it.
Depending on your preferences, you may want to include additional stipulations for the seller. These may include that certain appliances be left in the home and that specific repairs are made before you take ownership of the house. Most buyers also make a real estate purchase dependent on passing a housing inspection, a mold inspection, a termite inspection and a radon gas inspection. Lastly, you need to include a clause that nullifies the transaction in the event that you are unable to get approved for financing through a bank or mortgage company.
Presenting the Contract to the Seller
The contract needs to be read and signed by the seller before it becomes legally binding. If the seller is not satisfied with the price you offered for the property in question, he or she can make a counter offer and have the document returned to you. The seller may also want to negotiate on other terms, such as which items need to be left in the home when he or she vacates it. It is then up to you and the seller to negotiate the final terms of the real estate transaction. If you are unable to come to an agreement, the contract is considered null and void.