Offers can be on forms or on the back of an envelope but need to be complete
What is the minimum an offer should contain?
The Offer Contract can take on many forms and appearances, but must
be in writing and include the following:
* Date: the offer is written and time frame within which it is valid
* Property description
* Identification of the Buyer
* Identification of the Seller
* Price & Terms of paying the price - deposits, consideration, etc.
What is consideration?
This is also called Earnest Money Deposit. In Metrowest this is
typically a check for $1000. Who holds the deposit, where is it
held, for how long, and its disposition at closing should also be
specified in the offer.
What important dates should be specified?
There are three key dates that should be included in the offer. The
first is the date of execution of final purchase and sale contract
(also called the P&S). The second is the closing date on which
you'll take possession of the property. The third is the date on
which you will get your mortgage commitment from the bank.
What is a mortgage contingency clause?
The contract is conditional while the buyer uses good faith efforts
to secure financing. The buyer is released from this agreement if
turned down by lenders. There are specific dates for application and
commitments.
What is a property inspection clause?
The contract is conditional while the buyer engages experts to
assess the condition of the property, inspect for pests & insects,
test for radon & mold and/or test for lead paint. They buyer is
released from this agreement if any inspection turns up conditions
they deem unsatisfactory. The buyer can also renegotiate the terms
of the contract based on the findings if they still want the house.
There are specific dates setting the time frame within which the
inspections and release/renegotiation must occur.
Is a verbal acceptance by the sellers valid?
In a word, NO! The contract is not valid without signatures of both the buyers and
the sellers.
Any advice for buyers and sellers?
In real estate it isn't "real" if it isn't in writing.
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