Time for the Contract - What It Should Include - Ann Marie Damashek, GRI, CBR, SRES

Time for the Contract - What It Should Include

by Ann Marie Damashek, GRI, CBR, SRES 11/17/2019

Buying and selling real estate is a complicated process that takes time. Because you are making a life decision and dealing with strangers, you should always have a valid purchase contract. Real estate agents use a standard contract, but the buyer and/or seller may make changes to that contract. In making changes, be careful not to make the contract invalid.

A Valid Contract

Four elements make up a valid contract:

You must have an offer. In real estate, this is the party purchasing the real property.
You must have consideration. This is something of value, usually cash. In real estate contracts, this is called good faith money or earnest money and is usually 1 to 3 percent of the purchase price. The good faith money is typically non-refundable should the buyer back out of the contract. The consideration shows that the contract is not a gift.
The other party must accept the offer in the contract. If the seller signs the contract, they accepted your offer. However, if the seller does not accept your offer, they do not sign the contract. If the seller wants to counter, this may be verbal until the two parties agree upon a number. The real estate agent drafts a new contract that both parties sign.
Finally, the contract must contain mutuality or what attorneys often call “a meeting of the minds.” By signing the contract, the parties agree that they understand and agree to the terms of the contract.

Components of a Real Estate Contract

A real estate contract must contain:

The buyers’ full names.
The sellers’ full names.
The address and legal description of the property.
The purchase price and how the buyer will pay it, whether cash, cash subject to a new mortgage, cash subject to an existing mortgage, cash with the assumption of the existing mortgage or sale by land contract.
The amount of earnest money.
How the buyers and sellers will handle real estate taxes, assessments and adjustments.
How the sellers will transfer title and that the title is free and clear.
Date and time of possession of the property or closing date. In most cases, this is the closing date since most people do not have the cash to buy the property without a mortgage. It generally takes 30 to 60 days for a mortgage to be approved.
A list of improvements and fixtures that the seller will include in the purchase price.
Any other general or special conditions for the sale and/or purchase of the property.

Exceptions

Most real estate contracts also have exceptions. If these terms cannot be met, the buyers’ non-refundable deposit becomes refundable. Common exceptions include an inspection meeting the buyers’ expectations and the ability of the buyer to procure financing. The parties may further negotiate the price of the real estate based on the inspection. The parties may also add any other agreed-upon exceptions.

About the Author

Ann Marie Damashek, GRI, CBR, SRES

Ann Marie Damashek has always been a natural at helping people prepare their homes for sale. She started out with a successful business selling goods for people on eBay. "Nine times out of ten they were hiring me because they were down-sizing,” Ann Marie says. "So I decided to get my license. I said, ‘Might as well sell their house too.’” The transition was a smooth one and for nine years she’s had a thriving full-time real estate business that allows her to marry her entrepreneurial spirit with her passion for helping others. With an office in Larchmont, New York, she serves all of Lower Westchester County, with her primary market in the Sound Shore region. The majority of her business is "sphere of influence” with former clients referring her to friends and family. A gifted communicator, Ann Marie quickly builds trust and rapport with her clients by being both thoughtful and responsive; she understands that during the purchase or sale of a home, a quick response time is crucial. "I am very accessible,” Ann Marie says. "I always make time for my clients. They can call me, text me, email me up until 10 o’clock at night and I will respond. I’m available on weekends. I get back to people very promptly. I’m very customer service-oriented.” Her clients appreciate her professionalism, passion and enthusiasm and as a result her repeat and referral rate continues to grow each year. While selling real estate is serious business, Ann Marie knows that at times humor and a moment of levity can be a relief to clients. While she has a laidback and easygoing personality, she can be assertive when needed on her clients’ behalf. She loves being of service to them, and the continually changing nature of the work keeps her engaged and fulfilled. "It’s never boring,” Ann Marie enthuses. "Every day is different. That’s probably what I like most about it. But I also enjoy helping people sell or buy and educating them about the process. I love helping them achieve their goals.” This ethic of service has resulted in well-deserved recognition. Ann Marie has received the Westchester Magazine Five Star Real Estate Agent Rating four years running, in 2015 and 2016 she was the #1 agent in her office, and she’s a Zillow 5-Star Premier Agent. To keep in touch with former clients, Ann Marie sends cards to mark special occasions or reaches out via email. To market her listings, Ann Marie uses Multiple Listing Services (MLS), as well as Listingbook.com, a service that allows both agents and their clients access to MLS data. She also uses a Facebook business page and ads to boost new listings or promote upcoming open houses. "That drives a tremendous amount of traffic,” Ann Marie says. She also uses the most popular real estate websites such as Zillow and Trulia. A strong believer in giving back, Ann Marie sits on the Board of Trustees of her church and is involved in a variety of social justice projects. She’s affiliated with Furniture Sharehouse, a furniture bank for Westchester County, which collects and distributes gently used furniture free of charge to those in need. "I love it on so many levels because as a realtor, it’s helps my sellers downsize through charitable donations. I like the environmental aspect of it as well. And it helps people who truly need things.” She’s also involved in Impact 100, a women’s philanthropic giving organization. In her free time, Ann Marie enjoys gardening, traveling, and spending time with family and friends. For the future, Ann Marie wants to continue expanding her business and developing her brand, and she someday hopes to grow a strong team. But her main goal is to stay in the real estate business, helping her clients to achieve their dreams.