When you`re buying or selling a home, one of the most important documents you`ll encounter is the MLS standard form real estate contract. This contract is used by real estate agents and their clients to detail the terms of the sale. It`s important to understand what this contract is and what it entails so that you can make informed decisions when buying or selling a home.
What is the MLS Standard Form Real Estate Contract?
The MLS standard form real estate contract is a legally binding agreement between a buyer and seller of a property. It outlines the terms of the sale, including the purchase price, closing date, and contingencies. The contract is designed to protect both the buyer and seller, by ensuring that all parties are clear on the terms of the sale.
The MLS standard form real estate contract is widely used across the United States. It was developed by the National Association of Realtors (NAR) and is available through local real estate associations. The contract has been designed to simplify the sales process and make it easier for buyers and sellers to work together.
What`s Included in the MLS Standard Form Real Estate Contract?
The MLS standard form real estate contract includes a number of important terms and conditions, including:
1. Purchase Price: This is the amount that the buyer has agreed to pay for the property.
2. Closing Date: This is the date on which the sale will be completed, and the property will be transferred to the buyer.
3. Contingencies: Contingencies are conditions that must be met in order for the sale to go through. Common contingencies include inspections, appraisals, and financing.
4. Earnest Money Deposit: This is a deposit that the buyer puts down to show that they are serious about buying the property. The amount of the deposit is typically between 1% and 5% of the purchase price.
5. Closing Costs: These are the fees associated with closing the sale, such as title fees, attorney fees, and mortgage fees. These costs are typically split between the buyer and seller.
Why is the MLS Standard Form Real Estate Contract Important?
The MLS standard form real estate contract is important because it protects both the buyer and seller in a real estate transaction. It ensures that all parties are clear on the terms of the sale and prevents any misunderstandings that could lead to disputes. By using a standardized contract, buyers and sellers can have confidence that the terms of the sale are fair and equitable.
In addition, the MLS standard form real estate contract is recognized by lenders and other parties involved in the sale. This means that it can help to speed up the process of obtaining financing and closing the sale.
Conclusion
If you`re buying or selling a home, it`s important to understand the MLS standard form real estate contract. This document outlines the terms of the sale and is designed to protect both the buyer and seller. By understanding what`s included in the contract, you can make informed decisions and ensure that your interests are protected throughout the sales process.