Top Five Provisions to check before signing a Real Estate Contract!

Before signing a real estate contract, it’s crucial to review the contract carefully. There are certain terms of the contract that must be correct, to give you the best protection. These provisions affect your rights, responsibilities, and risks as a buyer or seller. Below are the top five provisions you should review before signing any real estate contract:

1. Purchase price and Financing Terms
   • Make sure the purchase price is accurate and clearly stated.
   • If financing is involved, confirm financing contingency deadlines.
2. Contingencies
   • Review all clauses related to:
     • home inspection – confirm you can get a home inspection completed before the attorney review period ends
     • appraisals – what happens if the property doesn’t appraise out
     • sale of current homes – is this transaction contingent on another real estate transaction
3. Closing Date and Possession
   • Confirm the agreed closing date and when possession of the property will transfer.
4. Earnest Money and Default Terms
   • Confirm how much money is required, where it will be held, and under what conditions it’s refundable or forfeited.
5. Disclosures and Property Condition
   • Ensure all required seller disclosures are provided and check whether the property is sold “as is” or subject to repairs.

If you review these provisions and they seem correct, you can go ahead and sign the contract. If the contract is accepted by the other party, forward the fully signed contract to your real estate attorney as quickly as possible. Remember, there is a short time period during which your attorney can propose changes to any of the provisions that may be incorrect in the contract. This is called the attorney review period.

Before you sign any real estate contract, make sure your rights and interests are fully protected. We specialize in reviewing and negotiating real estate agreements to ensure you understand every key provision — from contingencies to closing terms. Contact us today for a personalized consultation and move forward with confidence.