When you’re buying a house, the real estate sales agreement is one of the most important document you’ll sign. These agreements describe the rights and obligations of each party and should list the clauses agreed to during the negotiations. Because many agents use standardized forms to create legally-binding contracts, it’s important to read the agreement carefully before signing. Below are a few items you should check before signing an agreement.

What to Check Before Signing a Real Estate Purchase Agreement

The Earnest Money Clause

Before signing the contract, most buyers focus on the final selling price, but you should also double check the earnest money deposit. This small down payment is intended to show sellers that your offer is serious. While most earnest money deposits range from 1 to 2 percent of the purchase price, aggressive buyers will offer 4 to 5 percent to attract the seller’s attention. Keep in mind, however, that you likely won’t be able to recover these funds if you back out of the sale for reasons not covered by an explicit contingency.

Contingencies

Inserting contingencies in a real estate sales agreement limits your risk in case circumstances prevent you from closing on the house. If you adhere to the contingency deadline, terms and conditions, you can back out of the sale without losing your earnest money deposit. Typically, contingencies include a home appraisal, mortgage approval and inspection. 

Closing Costs

Escrow fees, inspections, and the other costs of closing can total thousands of dollars, making them a common point of negotiation in real estate transactions. Before signing your real estate sales agreement, make sure these clauses accurately reflect the deal you made with the sellers. Issues with closing costs are an extremely common error in sales contracts.

The professionals at Bernardini Law P.C., in Essex County, MA, can help make your real estate sales agreement stress-free. Because they focus exclusively on real estate law, the attorneys at the practice have the expertise to help with every step of the process. Follow their Facebook for more information, or call (978) 794-5525 to discuss your sale and schedule a consultation.