A land contract in North Carolina documents the terms of an agreement to buy and sell vacant land between two parties. The buying and selling parties must enter into this contract by negotiating offers and, ultimately, reach mutual terms such as the agreed purchase price and any financial eventuality. The agreement must also include all relevant legal descriptors of the land or terrain as they appear in the act. Upon completion of a transaction, the parties agree on a date for the transfer of the deed and the execution of the transfer of ownership – a date called “closing”. Both parties sign the contract at closing and the seller hands over the deed to the new owner. For the purposes of this summary, we assume that a residential building will be sold, but some of the same basic principles should apply to vacant land, rental apartments, or other non-commercial real estate in North Carolina. Contracts for the purchase and sale of residential real estate in North Carolina are used by potential real estate buyers to make an offer to purchase a home. The form contains information about the buyer`s offer, the property and the seller. In addition to submitting their bid, the buyer must explain how they are funding the purchase and when their bid expires.
The person selling the property has the opportunity to accept, reject or negotiate the agreement before the expiry date. State law also requires the buyer to receive a declaration of disclosure of real estate, transmitting information about the public services of the residence and defects or material dangers. If the seller accepts the contract, both parties can sign the contract to formalize the sale. Lead Paint Disclosure – Sellers of all buildings constructed before 1978 must provide buyers with a written statement revealing their knowledge of the use of toxic lead paint in the building. The North Carolina Purchase Agreement means a physical document to record all relevant information that includes the integral parts of a real estate transaction. The form is usually completed and extended from one party to another as a first offer. The following amended versions will be negotiated and submitted until an offer is accepted and executed. The terms of the contract are listed with the information of the buyer / seller and the details surrounding the realization of the purchase. You can reduce some of these issues by taking reasonable precautions:Use only appointments Conduct a phone interview before pre-screening. Determine, among other things, the intentions of the potential buyer. Learn more about purchasing resources. Get a pre-qualification letter.
You need to make sure that your potential buyers have worked with a reputable mortgage lender and that the lender has provided potential buyers with a written prequalification letter telling them how much of the loan they can afford and what type of loan they should receive. The prequalification letter is not a guarantee of financing as it depends on many other factors, but it is a good start. Never be alone with a potential buyer Have your phone handy during a demonstration for possible emergencies. Names: Correct names of buyers and sellersPersonal apartments: What personal belongings will remain in the house? Personal property is defined as anything that is not attached to the house and that a seller could remove and take away. Purchase Price: The amount of the total purchase price and how that price is to be paid. For example, if a home is sold for a total purchase price of $200,000, the seller may require a down payment of $2,000, with the balance of $198,000 payable at closing. Serious money deposit: how much and who will hold it? Due diligence fee: The latest contract form, used since January 2011, sets a period during which the buyer can terminate the contract at any time and without giving reasons. The “due diligence” fee is paid by the buyer to the seller to “buy” this time. From the seller`s perspective, the longer the due diligence period should be, the higher the due diligence fees. Financing Contingencies: Previously, this was a contract….