The alabama sales contract allows a buyer to make an offer to a seller and, if the seller agrees to his terms, becomes a legally binding sales contract. The buyer will generally include a serious deposit of money at the time of authorization between 2% and 5% of the sale price in order to confirm their good faith in the execution of the agreement. Although this is not required by state law, the buyer should require the seller to make a statement of information on the disclosure of the properties, revealing all structural defects or repairs necessary to the property. Full purchase price. Refers to the entire offer accepted without subtracting the down payment or serious money. 9. Determine whether your state has requirements in a given language in home sales contracts. Check your state`s requirements for a certain language clause or information to be included in the sales contract. Confidence. The money paid by the buyer is held in trust until the sale is completed.
It is now the property of the buyer and seller. The fiduciary company should also be included in the contract. If the sale has not been completed, the money may be returned to the buyer depending on the circumstances of the aborted transaction. There are offenses. If your client feels that the other party has violated the terms of a sales contract, it is strongly recommended that you consult a lawyer before discussing the next steps with your client. If a seller cannot present a “good marketable title” (i.e. the security is exempt from any pledge, judgment or other charges) and the sales contract stipulates that the seller can do so, a court may authorize the buyer to terminate the contract. [xi] The termination of a contract simply means that the buyer can get his serious money back and the seller keeps the property as if he had never entered into the contract. [xii] Realtors are unlikely to face a counter-issue, as real estate contracts almost always involve the payment of property and agency contracts involve future payments for services.