In any real estate contract, there are a number of important clauses that are regularly included. The better you understand these components of your contract, the better equipped you will be to handle your real estate transaction. Here are five important clauses you should know in your real estate contract:
- Warranties
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- Put simply, warranties are clauses in your real estate contract that guarantee that one or both parties will carry out their end of the bargain. Most commonly, these warranties will do things like ensure the quality and safety of the premises, or ensure that all utilities or appliances are in good working order. These are important because the party who violates a warranty can be held responsible for their failure to keep their end of the bargain.
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- Inclusions and Exclusions
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- A common source of debate in many real estate deals comes from inclusions and exclusions, which determines what the buyer is actually buying as part of the real estate deal. Most often, this includes terms over things like furniture or appliances, which may or may not be included as part of the transaction. Making sure this is clear in your real estate contract can avoid a lot of headaches later on.
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- Contingencies
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- An essential aspect of your real estate contract are the contingencies, which lay out the steps that need to take place for the transaction to be completed. Common contingencies include things like requiring a survey of the property to be completed, requiring a professional inspection, and requiring the buyer to get pre-approval on a mortgage. If someone fails to fulfill a contingency, the transaction will not be able to be completed, and likely the deal will fall through.
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- Timelines
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- It is important for the real estate contract to lay out exactly when certain parts of the contract are meant to be completed, including whenever closing is supposed to occur. These can also lay out how long the current owners may live in the house until the buyer takes possession, or other important issues. That way, both sides know exactly when they are responsible for fulfilling their legal responsibilities.
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- Closing costs
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- Finally, it is essential that your real estate contract lays out exactly who is responsible for closing costs. These can include the costs for things like surveying and inspections, as well as the various legal fees associated with the sale. That way, both sides are clear about how much money they must pay when it comes time to close the transaction.
For more than 50 years, the New York lawyers at Elovich and Adell have represented clients like you in real estate cases. Our attorneys, conveniently located in Long Beach, handle personal injury, real estate, commercial transactions, criminal defense, and labor and employment claims all across New York State. For a consultation, please call us at 516-432-6263 or visit our contact page for more information.
