Must-have Real Estate Contract Conditions
1. Terms of Finance: The majority of people can’t buy a home without securing a mortgage. If you don't have finance approved, it's a good idea to state on your contract that your offer is contingent upon you qualifying for finance. It would be to your advantage to do some research into interest rates in advance and get pre-approved for a mortgage so that there is no confusion when it comes to signing the contract.
2. Deposit Amount: The contract should include the amount of the deposit and that it will be deducted from the purchase price. Also that the deposit is refunded if the terms of the contract are not met.
3. Building and Pest Inspection: Unless you are purchasing a fixer-upper, make sure that your offer includes a building and pest inspection contingency. This will enable you to walk away from the deal if the inspection reveals too many expensive repairs to the structure.
4. Appliances and Fixtures: Do not assume anything when it comes to purchasing a home regardless of how small it might appear. If you want the washing machine, dishwasher and refrigerator don’t rely on a verbal agreement from the seller. Make sure that everything you want is specified in the contract.
5. Settlement Date: How much time do you require to finalise the purchase transaction? Common time frames are between 30 and 60 days. Make sure that you choose a realistic time frame that fits your schedule.
6. Sale of Your Home: If you are a homeowner and you are relying on the funds from the sale of your home you will need to state this in your offer. You will also need to provide a reasonable time frame in which to sell your home because the seller isn’t going to want to take their property off the market while you wait to sell your home.
Because a real estate contract is a legal binding contract, if you are not sure, then you should get separate legal advice. Also when purchasing a property, it's a good idea to hire a professional conveyencer who will assist in the settlement of the property.