Things to know about a sale contract
Whenever a property is sold, the seller and the buyer have to sign a sale contract that outlines the terms and conditions of the sale. It is a legal document so it must contain terms that are enforceable by the law. Most of the things in such contract depend on the state as the laws may differ. Thus, you should check the state laws before getting the contract prepared. However, there are a few things that remain same in every contract irrespective of the state. These things are enlisted below.
- Names and addresses of both seller and buyer
- Exact location of the property being sold
- Dimensions or total area of the property
- Amount paid by the buyer and the method of payment
A sale contract transfers the ownership of the property from seller to buyer, and thus it has to be errorless if you want to avoid any issues in the future. In case of any dispute, the contract will be used to settle it.
Generally in the sale of a very big property, the payment is given in installments. A large sum is given at the time of sale and rest is given later. In that case, a land contract is signed by both the parties. It contains all the essential information of the deal including the remaining amount and the deadline of making the final payment.
If the complete payment is made single time, a purchase contract is signed by seller and buyer.