The Home Contract Agreement is a fundamental legal instrument used in United States residential real estate transactions to formalize the purchase and sale of property. This document is essential when any residential property is being transferred from one party to another, whether it's a single-family home, condominium, or other residential property. The agreement must comply with both federal regulations (such as the Fair Housing Act, Truth in Lending Act, and RESPA) and state-specific real estate laws. It typically includes detailed information about the property, purchase price, closing conditions, contingencies, warranties, and remedies for breach of contract. The document serves as the cornerstone of the transaction, protecting both buyer and seller by clearly defining their rights and obligations throughout the process.
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1. Parties: Identification of the seller(s) and buyer(s) with full legal names and addresses
2. Background: Brief context of the transaction and property identification
3. Definitions: Key terms used throughout the agreement defined for clarity
4. Property Description: Detailed legal description of the property including address and boundaries
5. Purchase Price: Total purchase price and payment terms including deposit requirements
6. Closing Date and Possession: Specified date for closing the transaction and transfer of possession
7. Title and Survey: Requirements for clear title and property survey conditions
8. Inspections and Due Diligence: Buyer's rights and timeframes for property inspections
9. Seller's Representations: Seller's warranties about the property's condition and legal status
10. Buyer's Representations: Buyer's warranties regarding financial capability and purchase intentions
11. Closing Costs and Prorations: Allocation of closing costs and tax/utility prorations
12. Default and Remedies: Consequences and remedies for breach of contract
13. Notices: How and where formal notices must be delivered
14. General Provisions: Standard legal provisions including governing law and entire agreement
1. Financing Contingency: Terms for making the purchase contingent on buyer obtaining financing
2. Sale of Buyer's Property: Contingency related to the buyer selling their current property
3. Repairs and Improvements: Specific repairs or improvements agreed to be completed before closing
4. Home Warranty: Terms of any home warranty being provided
5. Lead-Based Paint Disclosure: Required for homes built before 1978
6. Swimming Pool/Spa: Special provisions for properties with pools or spas
7. HOA Provisions: Terms related to homeowners association membership and fees
8. Rental Property Provisions: Terms for properties with existing tenants or rental agreements
9. Well and Septic: Special provisions for properties with private water and sewage systems
10. Solar Lease/PPA: Terms regarding existing solar panel leases or power purchase agreements
1. Schedule A - Property Inventory: List of included fixtures, appliances, and personal property
2. Schedule B - Excluded Items: List of items specifically excluded from the sale
3. Schedule C - Title Exceptions: List of title exceptions and encumbrances
4. Schedule D - Required Repairs: Detailed list of agreed-upon repairs and improvements
5. Appendix 1 - Property Disclosure Statement: Seller's detailed disclosure of property condition
6. Appendix 2 - HOA Documents: Copies of relevant HOA rules, regulations, and financial statements
7. Appendix 3 - Survey: Property survey and related documentation
8. Appendix 4 - Environmental Reports: Any environmental assessments or reports
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