The real estate market has recently become a popular conversation topic, especially when it comes to Philadelphia. Homes are selling in record numbers and faster than ever before, meaning that sellers and buyers alike are agreeing to prices and terms more easily than usual. This often comes with a bank lending a good chunk of money to the buyer.
If you have ever wondered how a real estate transaction ends up on paper, we have outlined the basics in this article. We will discuss the Standard Agreement for the Sale of Real Estate in Philly, as well as the state of PA, in general.
What Is the Standard Agreement for the Sale of Real Estate?
Commonly known as the purchase and sale agreement or just the contract, the Standard Agreement for the Sale of Real Estate is a contract that the Pennsylvania Association of Realtors legal team has created in order to simplify, standardize and streamline the process of selling and buying a home. It is a legal document that has become considered the de facto standard that most realtors in Pennsylvania use for their clients as they sell and buy homes.
When Do Buyers Complete a Purchase and Sale Agreement?
The contract is usually signed by a lawyer and filled out in order to be able to submit an offer. It is done in consultation with the buying agent, and it is used to discuss the key terms and contingencies of any transaction. Should you find yourself buying a home for the first time, you’ll need to review the blank template of the agreement first with your agent at the beginning of your search, so you can get familiar with the important terms of the contract. So you don’t feel rushed when you’re ready to make an offer, be sure to ask a lot of questions early in the process.
Sections of the Standard Agreement for the Sale of Real Estate:
• Name of buyer(s)
• Name of seller(s)
• Name of brokerage(s) and agent(s)
• Inspection contingency
• Condo or PUD section
• Purchase price
• Closing date
• Tenant Occupied Addendum
• Seller’s assist
• List of inclusions or exclusions
• Mortgage financing contingency
There are more sections in the contracts as well as any disclosure forms with a total of 14 pages. In order to learn about all of the sections, take a look at our most recent step-by-step guide on the offer process, we buy houses.
Is This Considered to Be a Binding Contract?
If you hand in an offer, you are in reality submitting a signed contract that, if the settlers countersign it, would be binding. Be sure your offer terms are ones that you are happy living with. After the sellers countersign the agreement, you are locked into the sale.
Will I Need a Real Estate Attorney to Look at the Contract?
It is not necessary, because your real estate agent is trained to know the contract with ease. Still, you can use an attorney just to be sure if that will make you feel more comfortable.
Please note that the attorneys may charge a lot of money for their time and expertise while adding little to the deal. They may even make the deal less likely to happen at all as they usually are risk-averse and aren’t a fan of such contracts.
