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Real Estate Contract Review Checklist
Identification of Parties
Verify the names and contact information of the buyer and seller to ensure they match the parties' identification documents.
Check the legal status of each party (individual, corporation, partnership, etc.) to confirm their ability to enter into the contract.
Ensure that the signatures of all parties are present and properly executed.
Property Details
Confirm the legal description of the property as well as the address and any identifying parcel numbers.
Review any included personal property or fixtures to ensure they are clearly listed and described.
Inspect disclosures related to the property's condition and any material defects that must be acknowledged by both parties.
Financial Terms
Examine the purchase price, including the earnest money deposit and the balance to be financed or paid in cash.
Review the terms of any seller financing, if applicable, including interest rates, payment schedules, and default consequences.
Ensure that the contract specifies who is responsible for closing costs, property taxes, association fees, and other financial obligations.
Contingencies and Special Clauses
Identify any contingencies that must be met before the contract becomes binding, such as financing approval or the sale of a current home.
Examine any special clauses that may affect the rights and obligations of the parties, such as right of first refusal, option to purchase, or escalation clauses.
Check for any clauses that allow for contract termination without penalty under specific conditions.
Closing and Possession
Verify the scheduled closing date and location, and ensure that it is realistic and acceptable to both parties.
Review the provisions for possession of the property, including any rental or lease-back arrangements.
Ensure that the contract outlines the transfer of title and the type of deed to be provided.
Legal and Regulatory Compliance
Check for compliance with state and local real estate laws and regulations, including required disclosures and filing obligations.
Ensure the contract includes necessary legal provisions, such as those related to lead-based paint or other environmental hazards.
Review any homeowner association (HOA) rules or covenants that may affect the property and the obligations of the parties.
