When it comes to purchasing or selling real estate, the contract to buy and sell is an essential document that outlines the terms and conditions of the transaction. One critical component of this contract is the additional provisions section. This section is where any additional agreements or terms can be added to the contract. These provisions can vary depending on the circumstances of the sale, but here are some common examples of what the additional provisions section of a real estate contract may include:
1. Property condition disclosures: This provision outlines any known issues with the property being sold, such as water damage, mold, or structural issues. It also includes any repairs or renovations required before the sale can be completed.
2. Contingencies: These are conditions that must be met before the sale can go through, such as the buyer obtaining financing, or the seller making necessary repairs to the property.
3. Closing costs: This provision outlines who will be responsible for paying various fees associated with the sale, such as title insurance, transfer taxes, and escrow fees.
4. Occupancy: This provision outlines when the buyer can take possession of the property, and if the seller will be allowed to remain on the property for a period of time after the sale.
5. Home warranties: Some sellers may offer a home warranty as part of the sale, which can provide the buyer with peace of mind knowing that certain repairs or replacements will be covered during the first year of ownership.
6. Personal property: If any personal property, such as furniture or appliances, are included in the sale, this provision will specify what items are included and their condition.
7. Earnest money: This provision outlines how much earnest money the buyer is required to deposit, and what happens to that money if the sale falls through.
8. Commission: This provision outlines how much commission the real estate agents involved in the sale will receive.
In conclusion, the additional provisions section of a real estate contract can be a crucial component in ensuring that the sale goes smoothly for all parties involved. It is important to carefully review this section and ensure that all terms and conditions are clearly defined, understood, and agreed upon by all parties before signing the contract. By doing so, both the buyer and seller can avoid any potential misunderstandings or conflicts that may arise during the buying or selling process.