The Basic Real Estate Contract serves as the foundational document for property transactions in the United States. This contract type is essential for documenting the terms and conditions of real estate sales, ensuring legal compliance, and protecting both buyers' and sellers' interests. It includes crucial elements such as property description, price, contingencies, and closing requirements, while adhering to state-specific property laws and federal regulations. The document is designed to be comprehensive yet straightforward, suitable for both residential and commercial transactions.
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1. Parties: Identifies all parties to the contract, including legal names and addresses
2. Background: Brief context of the transaction and purpose of the agreement
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Amount and payment terms, including deposit details
6. Closing Terms: Date, location, and requirements for closing
7. Representations and Warranties: Standard declarations about property condition and ownership
8. Default Provisions: Consequences of breach by either party
1. Financing Contingency: Terms related to buyer obtaining financing, included when buyer requires mortgage financing
2. Inspection Contingency: Terms related to property inspection rights, included when buyer wants inspection rights
3. Sale Contingency: Conditions related to buyer selling existing property, included when buyer needs to sell current property
4. Tenant Rights: Provisions regarding existing tenants, included when property is currently tenanted
1. Property Survey: Official survey showing property boundaries
2. Title Report: Current title search results
3. Property Disclosure Statement: Seller's disclosure of property condition
4. Environmental Assessment: Environmental inspection results if required
5. Fixture and Fittings List: Detailed list of items included/excluded from sale
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