What the offer typically contains:
»Address of the property (must include legal description)
»Names of the Buyers and Sellers
»Purchase (or sales) price.
»Amount of earnest money and where it will be held.
– Earnest Money
– Consideration in real estate that binds the contract.
– Representation of your desire to purchase a specific piece of property.
– Becomes part of your down payment or closing costs at closing.
»Addenda and any other information or contingencies that are pertinent to the contract
»Title and escrow’s role in the transaction.
– Title Insurance
– It is assurance that every possible cloud that can be discovered from the public records such as mortgage judgments, tax liens, easements, and anything else that would affect your ownership and use of the property is cleared up prior to the purchase. It is also insurance that, if any undisclosed claim covered by your policy arises out of the past to threaten your real estate, it will be disposed of, or you will be reimbursed, exactly as your title insurance policy provides.
– Every lender requires that you provide them with title insurance. Every Seller must provide it to the Buyer.
– You only pay once.
– Both parties to a real estate transaction entrust legal documents and various funds to the escrow holder, which transfers the papers and funds upon closing of the escrow. As a neutral third party, both buyer and seller are assured that all mutually agreed to terms are met before the transaction is completed.