Legal transactions always involve the use of forms and contracts to make the deal enforceable. These include selling a residential property such as a home.
Selling real estate properties require the use of specific forms. These can be the standard ones or the state specific forms. The reason is that some states have their own set of laws when it comes to buying and selling homes which homeowners and real estate agents should follow.
Whether you’re selling your home on your own or are using a real estate agent, here are some of the most important forms that you should prepare.
Home/Property disclosure form.
This particular document is required from sellers. As per its name, it aims to disclose the physical condition of the property at the time of sale. To gain the trust of potential buyers and agents, home sellers needs to be as honest as they can in providing information about the real state of the property such as repairs made and other existing physical defects.
Lead disclosure form.
Those selling homes built before 1978 are required to submit this form as per the Residential Lead-Based Paint Hazard Reduction Act of 1992. The goal is to disclose any known information regarding the use of lead paint and possible hazards, the location of this paint and condition of painted surfaces.
Executing this form is also a way of protecting the parties involved. This can even serve as a deciding factor for the buyer whether to push through with the purchase or not after learning of the property’s condition.
Also known as a purchase agreement or sales agreement/contract, this document states the intention of the buyer. It specifies the proposed purchase price and details of the person buying the property as well as suggestions for an appraisal and home inspection if necessary. It should also state the payment terms such as if a deposit is required, how much and who should handle the amount.
Normally, an escrow agent is needed and in most cases, a lawyer acts as the agent.
This can be presented by buyers who may not be amenable to the requested purchase price by the seller. Most often, the counter offer asks for a lower amount and this done formally through the execution of a document. This contains the property address, original and proposed selling price, terms and conditions, date when the proposal ends and suggested terms of payment.
There are two options when the counter offer is accepted by the seller. It’s either the revisions will be included in the offer to purchase document or the signed counter offer will serve as supporting document to the sales contract.
Home inspection form.
If the homeowner has earlier called for a professional to do a home inspection, he or she can provide a copy of the inspection report to the potential buyer. This will give the buyer a concrete idea in advance on the real condition of the residential property being sold and can even save him or her additional costs.