Seller's Guide

The Contract

• Get it in Writing

  Oral agreements are usually difficult or impossible to enforce, so if you've negotiated your purchase verbally make sure to have contracts signed as soon as possible.
  

• Attorney Review

  Always make sure that any contract you sign has an attorney review clause that allows you time (at least three business days - preferably five) to review the document and have it checked out by your lawyer if you feel it is necessary. Many states specify a mandatory review period, whether it is specified or not, but don't take any chances - make sure it's in writing. This gives you the chance to make sure all bases are covered before you are committed.
  

• Choose an Attorney or Escrow Company

  In some areas it is standard practice to retain an attorney to handle the closing. In others the norm is to have the title or escrow company handle the transaction. If you do hire an attorney (which is a good idea), try and find someone local who specializes in real estate closings. An experienced real estate attorney can help you move quickly to closing and sidestep any problems or oversights. If you are using an escrow company, make sure that they have a solid track record.
  

• Cover All Contingencies

  Make sure that the buyer's contingencies are reasonable and that the time allowed for any required activities or testing (i.e. obtaining a mortgage, home inspections, etc.) is not excessive. Reasonable contingencies are an essential part of a fair and balanced contract - just don't let the buyer take advantage of you.
  

• Learn About Deeds and Title

  The deed is a legal document that transfers ownership of the home. There are several types of deed that can be used for your transfer, as well as a number of special provisions that may apply. Your attorney or escrow agent can answer any questions you have on title and deeds.
  

• Know Your Deposit Obligations

  The contract should specify the due dates and disposition of earnest money and deposits. Typically a small amount is posted at the signing of the contract with the balance of the deposit (usually 10% of the purchase price) due within 1-3 weeks. Make sure that the deposit monies are posted as required - they are your primary security in the deal.