Home Buying Practices in the Triangle

Sales Contract

• The “Offer to Purchase and Contract” is a standard form approved by the N.C. Real Estate Commission and the N.C. Bar Association. It is filled out by the buyer with the assistance of a real estate agent, signed by the buyer, and submitted with an earnest money check to the seller through the listing agent.

• Negotiating: The seller may accept the offer in its original form by signing it, thereby converting the offer to purchase to a sales contract when the “offeror” is notified of the written acceptance. The seller may instead decide to change the original offer in any way, thereby creating a counter-offer. Any counter-offer negates the original offer. A sales contract is binding only when it is in writing and any changes to the original offer are agreed upon in writing by all parties to the contract. There is no “first come, first served” in the case of multiple offers. A seller has the right to accept, reject or counter any offer. There are no time limits on this process unless specifically stated. Any offer can be withdrawn by the “offeror” before it is signed or before notification of the acceptance has been received.

• Contingencies: Several standard contingencies include: the buyer being able to qualify for a particular mortgage; satisfactory structural & termite inspections of the property; the seller’s ability to convey a general warranty deed to the property. Any other contingencies or conditions may be added as desired and agreed upon.

• Earnest Money: A personal check for approximately 1-2% of the sales price is submitted with the offer to purchase as good faith money. This check is usually held in a non-interest bearing trust account by the listing broker, and it is credited to the buyer’s down payment at closing. In the event the sale does not close, the disposition of earnest money must be agreed upon in writing by both buyer and seller or determined by the court. The listing company cannot release these funds without the written consent of all parties to the contract.

• Fixtures/Personal Property: Any items of personal property, whether attached or not, that convey with the real property, should be itemized in the contract. These items should be listed “at no value” as they should not affect the value of the real property. If the personal property being conveyed is of significant value, a separate bill of sale can be drawn up separately from the contract.

Adjustments and prorations are often made at closing for ad valorem taxes on real and personal property; homeowners’ dues; rent monies, tenants’ security deposits, etc.

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