The purchase contract of a real estate focuses on the home’s selling price, but the home’s price is not the only element that helps in determining the net outcome for the both the purchaser and the seller.

Let us discuss the five most important points that should be considered before deciding to go on with a price for your home:

Generally, the costs of transaction include the commission of the broker,a termite inspection,  a home inspection, a title search, transfer taxes, a title insurance policy of the owner, escrow fees or attorney’s fees and recording charges. The prices of these items vary significantly around the country. The issue about who will be required to pay for the costs, depends on negotiation and local custom.

A huge deposit known as “earnest money” followed by a down payment indicate that the purchaser is serious about closing the deal. From the viewpoint of the seller, the more cash the purchaser puts in escrow and the quicker the transfer of money takes place, the better it is.

The clause of escaping mortgage is a must for purchasers, except for if they are disbursing all money for the house. With no mortgage financing contingency, the purchasers can be legally forced to buy the house even if they cannot acquire financing. Moreover, an open-ended statement, according to which the buyer will get a loan “at the existing interest rate”, completely exposes the buyer to the fluctuations in the interest rate. A statement saying the loan has to be at a rate of interest “not to go above xx percent” and on particular terms is quite preferable.

Anything permanently installed in or attached to the house is real property, whereas, the personal property of the seller includes everything else in the home. This distinction creates confusion as to whether built-in appliances are personal property or real property. Likewise, it is difficult to distinguish whether the shelving system, chandelier or window coverings and so on, will be the personal property or the real property. Sellers intending to get rid of anything that is affixed to the house, should specify that in the contract. This goes for purchasers as well who expect to obtain any of the home’s furniture or other items.

Purchasers failing to perform, lose their deposit money. Sellers trying to change their mind can be sued for “specific performance,” that forces the home’s sale to the purchaser. A lot of contracts also spell out that disputes should be presented for arbitration or brought in small-claims court.

When you buy a house in Texas, you in fact purchase real estate, which is a combination of the land and all other things attached to it: your house, a swimming pool, the garage, septic tanks, fences and driveways.

The most precious resource
of a homeowner is land. It cannot be moved and you cannot make more of it. The only thing that you can do is build a house on the land. As land is very valuable, it has its legal description and documented history that is recorded under a plot or parcel number.

Your local government’s building or planning department or division can give you the legal description of your land, limitations and possibly the surveyed dimensions of your land, plus  a copy of your parcel’s map within a subdivision or tract. Some files contain photos.

The file that contains the description of your land will take in the legal schematics or specifications of aquifers, septic tanks, easements, wells, your home’s floor plan and other evidence showing the usage of your land over time.

Your land’s history could date back to the period of squatters and land grants, but it probably began with the development of your parcel as part of a tract in a subdivision. Planning and building departments typically have this information as they supervise development, home improvements, construction, building codes, demolition, permits, zoning rights, environmental issues, crop farming, and other activities which affect the land.

Though a majority of government records are accurate and complete, the bulk of records leaves sufficient room for omissions and errors. Whenever you come across a question regarding the use of land, its boundaries, zoning or easements, you may call for hiring a survey company or look for the interpretation of a title company. Let a real estate agent or surveyor in Texas review the documents that you receive.

Opening escrow during a real estate transaction usually triggers a title search which intends to verify the property’s status in a lot of ways. A title search discloses encumbrances, recorded interests, claims of title, claims against the land and other kinds of ownership, and claims against the components of your land. That can comprise the mortgage of the owner, titles, liens, judgments, deeds and other legal actions, easements, the status of property tax payments, claims against owner’s property and claims against the use of the property.