Contract Preparation Requirements
During the contract process it is probably a good idea to seek legal assistance. Depending on the individual state, there may be specific clauses that are necessary. Nearly all states will require that the sales contract be notarized as well. Sellers should determine if their state laws require a right to rescind as part of the for sale by owner documents. Types of information that should be included in the contract include:
Amount of deposit - Any deposit that a buyer has placed on the property should be included in the contract. Sellers should keep in mind that the contract format is a purchase and sale and should contain all relevant information.
Address of property - Real estate contracts should include the legal address of the residence. In addition to the street address, legal information regarding the property location (available from the deed) should be included.
Contingency clauses - Both the buyer and seller may agree to certain contingency clauses. Contingency clauses define the amount of time the seller has to obtain financing, specify the seller's legal right to have the property inspected and under what conditions the buyer and the seller may break the contract. State law often governs the time periods that are allowed for property inspections and breaking the contract.
There are other important clauses that should be included in the contract, including the buyer's right to enter the property, when the seller plans to move so the buyer may move in, and notes about defects in the property that the buyer has been made aware of prior to signing a purchase and sale agreement. Remember, this contract is a legal document and must contain all of the legally required information that has an impact on the sale of the home.