There are many layers of paperwork involved in the sale of real property, from the listing agreement, seller disclosures, to the final sales contract, which may also include additional addendums or contingencies.  As your listing agent, MSLNow can assist you in filling out all of the necessary forms, and even draft a customized sales contract (or purchasing agreement) to your specifications, while arranging for various inspections.  All of these services can be retained on a flat-fee basis. (Please see “Rent an Agent”)
 

To download sample real estate contracts visit our partner web site at:
http://www.uslegalforms.com/

(You will need Adobe Acrobat Reader to view these sample.) Download it by clicking here: http://www.adobe.com/products/acrobat/readstep2.html

Some Important Documents:

Listing Agreement - See previous section. Click here.

Seller's Disclosure Statement. By law, you are required to disclose any material defect about your property which may bear on the decision of whether or not to purchase the property by a potential buyer. Seller must sign and give a copy of Seller Disclosure statement to the Buyer which in turn must be signed by the Buyer and attached to the Sales Contract. Please click here to view a sample disclosure statement form.

Fair Housing Law - The Federal Housing laws prohibit discrimination in a wide array of real estate practices, including housing sale and rental, provision of homeowner's insurance and mortgage lending. The Fair Housing Act identifies seven classes protected by the law: race, color, national origin, religion, sex, familial status and disability.  State and local laws, (e.g. D.C.) often extend these protected classes to include such characteristics as sexual preference, age, political affiliation, and even student status.  Check with your local fair housing or human rights advocacy organization to find out what classes are locally protected in your area. Click here to read more about it: http://www.fairhousing.com/101/federal_laws.htm

Lead Based Paint Disclosure: Click here to view a sample lead-based disclosure form. lead-disclosure.pdf

Sales Contract: A sales contract exists when all terms, including changes, are ratified by the initials of all the principals (i.e., all owners and buyers).  When the contingencies are satisfied, the contract becomes enforceable. Click here to view a sample sales contract: va-sales-contract.pdf. 

An Offer and Counter-Offers- When a potential buyer is ready to purchase your property either the Buyer or the buyer's Agent will present a signed sales contract by the Buyer, usually with a deposit, to the seller. The initial presentation of the offer is usually in the form of a written sales contract. Once signed by you becomes a ratified contract and further changes must be mutually agreed upon by both parties in writing. Any changes you make to the initial offer and send back to the prospective buyer is called a counter-offer.

Always keep in mind that, once the contract is signed, it becomes a binding legal document for the transaction. A description of the offer will include, but is not necessarily limited to:

• Date, name and address of the buyer and seller, and the legal description of the property.

• Amount of earnest money deposit, which will be held in an escrow account by an attorney, or broker, unless otherwise noted.

• Sales price.

• Size of down payment, and how the remainder of purchase price is to be financed. The offer should indicate the maximum interest rate the buyer is willing to pay, and the right to cancel without penalty if such financing proves unavailable. 

• Proposed settlement date and occupancy date, and daily rent provision for “post-settlement occupancy,” if the seller cannot vacate and becomes the temporary tenant of the buyer. 

• Contingencies, if any, such as satisfactory review by attorney, structural inspection, appraisal, or sale of the buyer’s current home. 

• Other important provisions, including a list of items that convey with the sale, stipulation that title must be insured, and who is to pay various settlement costs.

At the stage of processing the final paperwork of the sales transaction, all contingencies must be satisfied and eliminated. The buyer will select a settlement and/or a title company, and you will need to work with them directly and to provide them with the vital information such as your loan pay-off information, etc.  

A number of real-estate-oriented professionals come into play during the home-selling process, particularly after an initial sales agreement has been signed, including: a home inspector (as usually requested by the buyer) termite inspector, appraiser (as usually requested by the buyer’s lender), and attorneys (representing the seller and the buyer, respectively).  Very often, a mortgage approval can be made at the time of application, subject to verification of the information provided.  However, as a back-up plan, just in case the buyer’s financing falls through, the seller should continue to keep the property in showable condition.

Here are some other things to keep in mind as you are nearing the completion of the home selling process:

• Termite Inspection - A termite inspection is required by most lenders, and is usually specified in the sales contract (although it’s not usually a requirement for hi-rise condos).  Occasionally, existing coverage may be in effect that might make such an inspection unnecessary.  The seller is generally responsible for payment of the inspection, removal of any infestation if required, and the repair of any damage if needed.

• The Buyer’s Loan Approval - You need to keep yourself informed about the buyer’s loan approval progress, either through direct communication with the buyer, or through the buyer’s agent.  With every contract, the seller should require the buyer to supply a pre-qualification letter.  Additionally, most contracts require the buyer to make a loan application immediately after contract ratification (usually within 7 days), and to obtain a final approval letter (usually within 30- 45 days).

• Appraisal - Upon receipt of any information requested, and the completed appraisal, the lender issues final approval of the mortgage application.  VA, FHA, and some conventional lenders may specify requirements that must be met before the loan will be made, such as major repairs.   When the loan is approved, a commitment is issued to the buyer.  Many contracts require a loan commitment from the lender within a specified period of time.

After Loan Approval 

After the buyer receives written loan approval, the seller and the buyer’s agent (or buyer) will coordinate a settlement date.  You will need to confirm the date, place, and time with the buyer, and you should prepare a checklist of everything you need to bring to settlement.  You should also notify utility companies to transfer accounts.  With a scheduled settlement date, the home seller can begin to make his/her own definite moving plans.

Unless otherwise provided for in the contract, the buyer takes possession of the property at the time of settlement.  The seller should make plans to clean, remove trash, and vacate at least one day prior to settlement, or, at the very latest, no later than the settlement day.  All appliances should be in good working order in time for the buyer’s final walk-through inspection (see below).

Click here to read more...settlement process