Whether you are a property seller, buyer, or a real estate agent, you must have a sound knowledge about the Standard Virginia real estate contract. Understanding the Standard Virginia real estate contract will help you avoid legal problems that usually develop later when you close a property transaction. By definition, a real estate contract is also known as a residential purchase contract which is signed between two or more parties. It is a bilateral, binding agreement with a legal ability or the exchange and purchase of real property. The whole contract is based principally on the legal consideration which means that money will be exchanged for the real estate.
In Virginia, the United States Statute of Frauds is applicable which requires both the real estate buyer and seller to sign the agreement. It is highly important for both the parties to consult with their separate experienced real estate attorney and gain their advice and opinions on this matter.
What does the standard Virginia real estate contract contains?
Commonly, a real estate residential purchase contract includes the following details.
- Proof of identify of both the buyer and seller, the real estate property, and the price agreed between the parties.
- All the basic details, rights, duties, and obligations of the contract.
- The condition and features of the property (for e.g. what is built-in and what is not built-in).
- The conditions and situations necessary for finalizing the purchase agreement.
- The total amount deposited by the party.
- The finalized closing cost of the transaction. (It needs to be mentioned that who pays what amount).
- The potential closing date.
- Signature of each party involved.
- The terms and conditions necessary to be present at the time of possession.
When the buyer signs the contract, he/ she should made the deposit. In this procedure, the involvement of the real estate agent of the purchaser is mandatory. Basically, this deposit is only a small fraction of the total selling price. However, the total selling price and the amount of deposit is mentioned in the contract.
Important considerations related to the buyer
It is a critical consideration and you might lose your deposit if the buyer wants out. In many cases, the seller is sued. If you are realizing that you should get out of the deal, you must consider this option when contingencies are being met.
One of the most common out can be viewed from the viewpoint of inspection contingency. Before finalizing the deal, the buyer asks for a visit to the property. It is possible that the buyer may find some deficiencies in the property or the construction quality does not match with the expected standards of the buyer. In these cases, the parties have the legal right to cancel the contract without being guilty.
In most states including Virginia, property inspections are done in advance which helps people to save time and cost of travelling. Therefore, an inspection of the property might not be valid for a contingency.