When you receive an offer it will usually be written on the standard Purchase & Sale form and Addenda.
Every state handles their real estate transaction agreement differently, so even if you have purchased a home before, or if you have moved from another state don’t assume you are familiar with this agreement.
When you see a copy of a Purchase and Sale Agreement, you will see that page one is where all the terms of the offer are. Additional terms that customize the offer further are listed in the Addenda section of page one and attached to the agreement. The remaining pages are what we call the Boilerplate. The Boilerplate explains how the terms are to be carried out. For example, if the buyer agrees to do an inspection within ten days, exactly when would the count start? When is the deadline? And how do weekends and holidays factor in? The Computation of Time section in the Purchase and Sale Agreement explains how the timelines are counted. Terms, boilerplate, addenda, earnest money and pre-approval letter make up the basic package that allows the potential buyer to write an offer on your property. Following is the list of the most basic and commonly negotiated terms listed on page one.
The Terms of the Offer
- Purchase Price
- Earnest Money
- Default
- Offer Expiration
- Closing Date
- Possession Date
- What is included in Sale
- Title Company
- Escrow Company
- Services of Closing Agent for Payment of Utilities
- Charges and Assesments due after Closing
Addenda (Most Often Included)
- Finance Contingency
- Inspection Contingency
- Optional Clauses
- Utilities
