Congratulations! You are finally on the verge of selling your Jacksonville home. Maybe, you are about to start the next biggest chapter of your life. And for that, our team at BuyingJaxHomes would like to wish you luck.
But you still have to deal with a few things like the Purchase & Sale Agreement.
For those not aware of how big of a deal this process actually is, let me tell you that it’s one of the most important processes while selling a home.
That’s the reason you need to make sure that there aren’t any room for errors.
This blog post details all the key elements of a Purchase & Sale Agreement that you should look at before proceeding forward with the process.
The Key Elements of a Purchase & Sale Agreement You Should Look at While Selling Your Jacksonville Home
Following are the crucial elements of a Purchase & Sale Agreement:
- Address & the Parties Involved
- Price & Terms
- Closing Date & Costs
- Real Estate Taxes & Special Assessments
- Excluded or Included Items
- Full Disclosure
- Contingencies
Address & the Parties Involved
The first thing you should be looking at the property details mentioned in the agreement. It should consist of the property’s exact address and its legal description.
In addition to this, buyer’s and seller’s details should be clearly mentioned.
Price & Terms
The Purchase & Sale Agreement should also consist of the price offer accepted by the seller, i.e. you. Also, the means of payment must be clearly mentioned.
Some common methods are down-payments, all-cash, new mortgage or making arrangements in an already-existing mortgage.
The buyer’s lending situation and down-payment should be clearly mentioned in the Purchase & Sale Agreement.
Also, it includes earnest money requirements.
This involves paying a certain amount for contract confirmation, which is a refundable amount needed to be paid by the buyer.
Once the contract goes through and the deal is finalized, the seller is required to refund the amount in-full.
Closing Date & Costs
Sale’s closing date must be clearly mentioned in the Purchase & Sale Agreement. Also, there must be stipulation included regarding the changes in the closing. The possession is transferred to the buyer based on the listed closing time and date. Also, it involves the conveyance of the title of the property from seller to buyer.
Also, closing costs for both the buyer and the seller should be clearly mentioned. These are the costs expected to be paid during the closing process.
Real Estate Taxes & Special Assessments
In addition to the above-mentioned things, property taxes as well as other costs like maintenance fees, fuel, homeowners’ association fees should be clearly mentioned in the agreement.
If taxes can’t be assessed immediately, they can be mentioned in an addendum.
Remember, the home-seller is required to deal with the special assessments prior to and during closing.
Excluded & Included Items
During the property’s sale, the seller may or may not be willing leaving behind few of his/her items. So, anything that the buyer will get should be outlined in the Purchase & Sale Agreement.
This involves items like:
- Doors
- Windows
- Heating & Cooling Equipment
- Air Conditioner
- Light Fixtures
- Bathroom Fixtures
- Built-In Kitchen Appliances
- And various others!
There are various items during the home-showing process, which may not make it to the list. So, it’s advisable to add in all the items that you promised the home-buyer in the Purchase & Sale Agreement.
Full Disclosure
As a seller, you are required to disclose any or every information that may impact your property’s value or safety.
In most states, concealing known defects is illegal.
Hence, you should familiarize yourself with the disclosure laws and disclose the following information:
- Well Disclosure
- Lead Paint Disclosure
- Methamphetamine Disclosure
- Personal Interest
- Termite Damage
- Radon Gas
- Adequate Facilities Taxes
- Subsurface Sewage Disposal System
- Potential Annexation
Contingencies
Before the property is sold, buyer and seller can mandate personal agreement contingent detailing certain conditions that should be met before the property sale goes through.
This includes:
- Financial Contingency
- Inspection Contingency
- Appraisal Contingency
- Home Sale Contingency
Conclusion
A real estate Purchase & Sale Agreement is important. Before going all in, it’s really important to educate yourself with all the whats.
This will help you avoid any complications, helping you turn the entire process smooth.
To know more about these terms, feel free to head over to our office or contact one of our experts and we’d love nothing more than helping you out.