Contract of Sale
Once an accepted offer is reached between the buyer and seller, a memorandum of terms is updated and sent to all parties, including the attorneys representing the buyer and seller.
The memorandum of terms includes the following information:
• The name and contact information of all parties, including the seller and buyer; the seller’s and buyer’s attorney; and the seller’s and buyer’s real estate agents.
• The address of the property being purchased.
• Agreed upon sale price.
• Down Payment to be made. Generally 10% of the asking price is delivered upon the signing of the contract.
• The closing date agreed upon by buyer and seller.
• Contingencies. The most common contingencies are with regard to mortgage and the house inspection.
• List of items on the property that are to be included/excluded from the sale. Using this memorandum as a guideline, the seller’s attorney will create a contract and send to your attorney. You will then review with your attorney and request any modifications needed. After modifications to the contract are made and both parties are in agreement regarding the terms, the buyer will send a deposit check to the seller’s attorney. Both the buyer and seller will then sign the contract. Even after signing, the contingencies of the contract must be met for the transaction to go forward to closing.