Friday, June 15, 2007

What to look for in a home sale contract

When you go to sell your home you will have a contract that will be negotiated. After you finish the negotiations you will need to remove the subjects on the contract before you have a firm deal. Here are a bunch of things to look at in the contract.

Anyone who has ever purchased or sold a home should be familiar with the concept of contract subjects. For those who have never heard the term, I will explain in more detail. During a home sale there are a number of negotiations that happen between the concerned parties. Sometimes they are detailed on paper if they are of enough importance, these are known as subjects. Subjects occur after the initial offer for the home is made when the buyer would like certain changes made to the home. Below we will explore some of the more typical subjects involved in real estate contracts.

By far the most common subject is "subject to the home passing an inspection." This means that the buyer's offer is subject to the home's passing of a legitimate inspection. Therefore the buyer has the right to rescind the offer if the home does not pass the inspection. Although it is also true that if the home fails inspection the buyer may still want your home. IF a home does not pass the inspection then the buyer may alter their subjects to incorporate the necessary repairs to ensure that the home does eventually pass. These will typically read some thing like "subject to the necessary repairs being made to the home at the cost of the buyer." Now, usually the subject will go into more detail about the fixes that are necessary; but as we aren't making an actual offer here the preceding statement is a bit of a blanket statement. Let's use the example of a faulty roof on a home.

The buyer has an inspector come in and do their thing. The report comes back saying that there are leaks in the roof and on that basis the home does not pass. The buyer can then make the subject of "upon completion of a new roof with warranty." If the seller accepts this subject they are then responsible for the installation of the new roof and upon completion the sale can go ahead as outlined in the contract.

Sellers can also utilize subjects during the contract process to put rules or guidelines on the transaction. The most common of these is a subject to omit certain items from the sale of the home. For instance, the seller has just purchased an expensive custom range and grill and when they move they are planning to take it with them. Their subject will clearly state that in the sale of the home, the new range is not part and parcel of the deal. This kind of subject can also apply to window coverings, other appliances, or indeed anything that the seller wants to take with them, provided that it is agreed upon by both parties.

Joshua Keen is a real estate agent located in Atlanta, Georgia. The Keen Team specializes in the sale and purchase of Intown Atlanta real estate. When looking for Atlanta MLS Listings, contact Ben and Joshua for the best Atlanta realty services!

This info especially as far as home inspection subjects go is great for your to think about throughout the home selling process

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