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It has been a long time since you moved into your home, but life has
to move ahead. As you grow older, get married and have children, the
same home where you spent your bachelor days might not have
sufficient space to accommodate the new members of your family. Then
there might be occasions you have to move to a new city because of
your career. In circumstances such as these, you will probably
purchase a new home and unless you really want or need a second
home, it makes no sense to keep the old one.
By disposing of your old abode you may also earn a tidy sum of money
that you can use to pay off the costs for your new property. Most
people do not bother to acquire or prepare a proper legal document
before getting ready to dispose of their home. However, it is vital
that you have a properly drafted real estate contract. As the name
implies, a real estate contract the document which will help
authorize the transfer of the full rights of your property to the
purchaser.
There are many online sites that provide a real estate forms in
standard text and PDF format, which you can download or print out.
If you have no experience at all with the process of selling a
property, you may opt for a lawyer to prepare your real estate
agreement. These lawyers know most aspects of the paperwork, along
with the loopholes in a poorly drafted real estate agreement. They
also know that mistakes in this contract might cause problems, both
legal and financial.
Your real estate lawyer will be fully acquainted with the fact that
the names of the parties, both the seller and the purchaser, should
be present on the real estate contract. The contract should also
mention the legal description along with the address of the
property.
The real estate contract should also contain the purchase price of
the property and usually states that the transaction is contingent
upon a satisfactory appraisal. Voluntary signatures of both the
seller and the purchaser of the property should also be there on the
agreement. The contract stands void if it is signed a mentally
impaired persons or by someone under the influence of drugs,
including alcohol. You should remember that only persons of legal
age and possessing a sound mind are able to enter into binding
contracts.
If you are disposing of a house that is NOT your primary residence
for a greater value than you paid for it, you might be subject to
capital gains tax. Both individuals and corporations need to pay
income tax of the net total amount of their capital gains, and this
includes the amount you have gained by selling off the property. |
