On this episode of Real Estate Insights with the Freund Group, John goes over the first parts of the real estate contract.
Each week John will cover a little more of the contract. Sometimes a sales contract can be confusing and when it comes to a real estate contract you need to be informed about what you are signing.
1. Parties involved. The name in this section should be precise and match the buyer/seller’s driver’s license or state issued ID.
2. Legal Description. Title companies use this section to pull documents from the county. The legal description is found on tax records.
What stays with a property and what does not? Typically, those things that are permanently attached to a home stay with the property at time of sale. Examples are curtains, rods, window treatments, light fixtures. Examples of things that are not attached: refrigerators, washer/dryers, wall mounted TV’s. Some items can remain with the property but will need to be added to a NON-REALTY ITEM Addendum and will need to be negotiated with the seller. The seller can also exclude items that are attached an example would be: a light fixture, hot tub, canopy.
3. Sales Price. The sales price is broken down into cash, financing and total. Financing will include a Third-party Financing Addendum which will break down the financing. John will discuss the Third Party Financing Addendum in more debt. In a later episode.
4. Texas law requires a real estate agent disclose if they have at least a 10% interest in the property. This would apply to an agent selling their own home or a relative’s home amongst other scenarios.
John will cover earnest money and more of the contract on the next episode of Real Estate Insights with The Freund Group. Be sure to check out our Facebook business page for up to date real estate information and local area events.