What You Need To Look Out For In Real Estate Contracts

what to look out for in real estate contracts sign property purchase papers fine print document

In order to buy and sell real estate – you need a real estate contract. It is basically an agreement that outlines the conditions of the transaction. 

Although real estate contracts are mostly fairly standard, you do need to read them carefully to make sure that everything checks out. The only problem with that is most people don’t really know what they should look for and scrutinize closely. 

Aside from the more obvious items such as the names, addresses and purchase price – here are a few things that you need to look out for in real estate contracts: 

Financing Terms 

The financing terms in the real estate contract are important to protect buyers. Ideally they should specify that the purchase offer is contingent on financing being obtained at a specific interest rate. In this way buyers won’t be exposed should their loan be declined, or if they’re unable to obtain a loan at an interest rate they can afford. 


An inspection clause will allow the buyer to hire a professional home inspector to check for any significant flaws that may be difficult and expensive to repair. It will also let buyers walk away from the agreement if such flaws are found, or let the seller modify the terms to credit the cost of repairs from the purchase price (or pay for it themselves). 

Closing Date 

The closing date in the real estate contract should be based on the time both parties require to complete the sale. For the buyer it may be the remaining time on a lease, and for the seller it could be the time it takes for them to find a new home. 

Sale Of Existing Home 

Adding a contingency for the sale of an existing home is crucial if you’re a buyer and need to sell your current home in order to afford the new home that you’re buying. On the other hand sellers should check that there is a reasonable timeframe attached to this clause so that their property doesn’t remain off the market for too long. 

Closing Costs 

Every real estate contract should specific which party pays the various different types of closing costs that will be required. Although inspections, loan, escrow and legal fees are normally paid by the buyer, in some cases the seller may be asked to cover them to reduce the cash needed to close the deal. 

Reliable Realty

Keep in mind that although you should pay special attention to the items listed above, it is important that you carefully read the real estate contract in its entirety before signing it. The last thing you want to do is sign a contract for real estate in Lloret de Mar or elsewhere and find out later that it has hidden pitfalls. 

Real Estate Excellence

If you really want to be safe it is always best to note down any questions then turn to your real estate agent or a lawyer experienced in real estate contracts. Getting your property questions answered can save you a lot of time and money in the future with your real estate contracts!

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