Lease Purchase Agreement

 

Commonplace Tips on a Typical Property Sale

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.