Seven Terms to Watch for in a Contract
Make sure the terms of an offer are agreeable to you before you sign. What’s most important?
- PRICE. Is it in your ballpark?
- CLOSING DATE. Is it reasonable and realistic in relation to your needs?
- DATE OF POSSESSION. Does the buyers’ preferred possession date raise any concerns? For example, is it before the closing? If so, are provisions made to protect you from liability and provide rental payments to you between possession and closing?
- EARNEST MONEY. Look for the largest earnest money deposit possible, which is usually a good indication of sincere buyers.
- FIXTURES AND PERSONAL PROPERTY. Review the list of items that the buyers expect to remain with the property and be sure it is acceptable.
- CONTRACT EXPIRATION DATE. How long do you have to make a decision on the offer?
- CONTINGENCIES. Study the buyers’ other terms carefully. Set time or cost limits on contingencies so that they won’t drag on and potentially affect your plans.
