By Barbara Lehrer
Real Talk
Barbara Lehrer
When buying or selling a property it is important to organize and review the contracts you will be signing, as well as those that are already in place. I suggest doing this so that there are no surprises as you commit to a specific deal. You can go over blank forms with your realtor or with your real estate attorney. The State of Connecticut and the Board of Realtors have overseen the development of the major contracts so they are easy to read.
The listing contract, for instance, explicitly states that you are totally in contract with the agent and their company. Any leads you may bring to the agent are then the leads of the company, and commission is always paid during the length of the contract. You give permission to the agency to advertise wherever they feel it is appropriate. Clarity on disclosures, warrantees, even your ability to pay commissions are all in the contracts.
The purchase and sales agreement also is a good one to read. It will remind you that funds are required upfront in order to secure the sale temporarily as you get your home inspection and your mortgage contingencies satisfied. The timeframes are important, as are any other contingencies you may need, such as requiring to sell to buy.
Although the listing and sales agreements are the main contracts you think of in real estate, there are many others. Perhaps the home inspection contract you sign will suggest what they will and will not inspect, for example. The mortgage application results in another contract. Sometimes this one is a little more complicated; your attorney should review it.
You may have contracts on hand that will be taken over by the new buyers of your home. Warrantees for roofs, windows, furnaces or appliances could fall into this category. Perhaps you have an alarm system company. They often have a complicated process for changing hands. Termite treatment contracts, well company commitments or oil delivery services are all questions your realtor will have when listing your home. And if you have added solar panels to your home, this contract has many levels of cost and management.
If you keep good records, then the contracts will be where they should be and the transactions will be smoother. Your realtor’s job starts with outlining what is to come. This paperwork part is good to get out of the way so you can concentrate on the fun stuff like purchasing a new home.