A real estate purchase contract is a written agreement between the buyer and the seller that outlines the sale of a home. Make sure you know about it ahead of time so that there are no surprises that make you feel uncomfortable!
The Purchase Contract - A Living Document
The Real Estate purchase contract is what I like to call a 'living document'. There are 2 reasons why a states this: 1) because the contract does not end, or "die", on possession day, but lives on afterwards , and 2) this contract is constantly being refined by provincial real estate experts and provincial regulatory bodies to adapt to the most current issues while still staying true to its traditional purpose. The two primary sections of a Real Estate Purchase Contract are the Standard Section and the additional sections.
Real Estate Contract - Standard Sections
Home buyers mostly focus on 4 areas of the contract: the price of the home, the possession date of the home, the appliances included with the home, and the conditions and dates assigned to those conditions. However it is important to know all aspects of the document before signing. The standard sections are the core of the contract and outline the property, the people, the transaction, deposit, closing, and insurance details. It also sets out the terms, conditions of the sale, and states the dispute process remedy and provides advice and disclosure, and a glossary of the terms used in the contract.
Real Estate Contract - Additional Sections
There are also additional sections to the purchase contract that can be added if they are relevant to your particular home purchase or sale. These additional sections are called schedules , and can take add a variety of different stipulations and information. The most common schedules added onto a purchase contract are a financing schedule, a property inspection schedule, a property schedule. and a sale of the buyer's home schedule. Previously there had a also been a condo schedule as well, but here is now a separate purchase contract created specifically for condo purchases that has the information needed for condo purchases imbedded within it.
Going Over the Purchase Contract at the Offer Stage
My buyers are always very excited at the offer stage, so I want to make sure that as much of the form is filled out as possible beforehand, with basic contact and property information on it. When it comes to signing, I always go over the whole contract, even if it's in 'Cole;' Notes' form, and make sure they initial the bottom of each page once it is read to them. When then go back to the start of the contract and fill out the following steps (in order)
- Appliances included with the home
- Possession date
- Condition(s) and Condition day(s)
- Any additional terms (if applicable)
Always remember that you can always get outside professional opinions from a lawyer on the contract if that is what makes you comfortable. You should NEVER sign a contract that has confusing language or something that you don't understand. A Real Estate Purchase contract is another way your trusted Realtor™ can help a home buyer with a smooth transaction.