The Earnest Money Real Estate Contract is a crucial document in U.S. property transactions, serving as the primary agreement between buyer and seller. It's typically used when a serious offer has been made and accepted, requiring the buyer to provide a good faith deposit (earnest money) to demonstrate commitment to the purchase. The contract includes essential details such as property description, purchase price, contingencies, and closing terms. This document type is particularly important as it creates a legally binding framework for the transaction and protects both parties' interests throughout the sale process. The contract must comply with state-specific real estate laws and federal regulations, and often serves as the foundation for the final closing documents.
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1. Parties: Identification of buyer and seller with full legal names and addresses
2. Background: Brief context of the transaction and property details
3. Definitions: Key terms used throughout the contract
4. Property Description: Detailed legal description of the property being sold
5. Purchase Price: Total purchase price and payment terms
6. Earnest Money: Amount, deadline, and handling of earnest money deposit
7. Closing Date: Specified date or timeline for closing the transaction
8. Due Diligence Period: Timeframe and terms for buyer's investigation of property
1. Financing Contingency: Terms related to buyer's ability to obtain mortgage financing
2. Sale Contingency: Conditions related to the sale of buyer's current property
3. Personal Property: List of included/excluded items in the sale
4. Home Warranty: Terms of any included home warranty
1. Property Disclosure Statement: Seller's disclosure of property condition and known issues
2. Personal Property Inventory: Detailed list of included personal property items
3. Title Exceptions: List of title exceptions and encumbrances
4. Lead-Based Paint Disclosure: Required disclosure for properties built before 1978
5. Property Survey: Current survey of property boundaries and improvements
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