Preparation and Review of Real Estate Contracts
Preparation and Review of Real Estate Contracts
When an attorney reviews a real estate contract, they focus on various details to ensure their client’s interests are protected and the transaction is legally sound. Here are a few key aspects they typically look for but are not limited to:
1. Property Description: They verify that the contract includes an accurate and detailed description of the property being bought or sold.
2. Purchase Price and Payment Terms: Attorneys confirm that the agreed-upon purchase price is clearly stated and that the terms of payment, including any deposits are outlined accurately.
3. Contingencies: Attorneys review any contingencies, such as financing, home inspection, or appraisal contingencies, to ensure their client has a way to back out if certain conditions are not met.
4. Closing Date: They confirm the specified closing date and assess any provisions related to possible extensions or delays.
5. Title and Ownership: Attorneys ensure that the contract addresses the transfer of clear and marketable title from the seller to the buyer.
6. Seller’s Representations: Attorneys examine any representations or warranties made by the seller regarding the property’s condition, history or any known defects.
7. Appliances and Fixtures: They review which appliances and fixtures are included in the sale and whether they are in working condition.
8. Closing Costs: Attorneys assess the allocation of closing costs between the buyer and seller as outlined in the contract.
9. Default and Remedies: They review provisions related to default by either party and the available remedies in case of breach.
10. Title Insurance: Attorneys ensure that the contract addresses the requirement for title insurance to protect the buyer’s ownership rights.
11. Homeowners Association (HOA) Disclosures: If applicable, they review any HOA rules, fees, and disclosures that need to be provided to the buyer.
12. Environmental Disclosures: Attorneys check for any required environmental disclosures, especially if the property is in an area prone to specific risks.
13. Earnest Money: They confirm that the amount of earnest money (good faith deposit) and the conditions under which it can be forfeited or returned are clearly outlined.
14. Addenda and Amendments: Attorneys ensure that any additional agreements, addenda, or amendments to the contract are properly referenced and included.
15. Dispute Resolution: They review any provisions related to dispute resolution, including arbitration or litigation processes.
16. Termination Rights: Attorneys check for provisions allowing either party to terminate the contract under specific circumstances.
17. Seller Financing: If applicable, they verify the terms of any seller financing arrangement.
18. Property Zoning and Use: Attorneys assess whether the contract addresses zoning regulations and any restrictions on the property’s use.
19. Local Laws and Regulations: They confirm that the contract complies with local real estate laws and regulations.
By meticulously reviewing these aspects, attorneys aim to safeguard their clients’ interests and ensure that the real estate transaction proceeds smoothly and in accordance with the law.
If you need any assistance with preparing or reviewing a Real Estate Contract, call our office at (352) 556-5105.
If you need any assistance with preparing or reviewing a Real Estate Contract, call our office at (352) 556-5105.