Upon completion, this contract will:

• State the asking price for the home
• Identify duties of the Broker as obtaining a ready, willing and able Buyer who offers at least the asking price or any other price acceptable to the Seller
• Identify the duties of the Seller as having authority to sell (all parties on the deed must sign all documents related to the sale of the property), to refer all inquiries concerning property to Broker/Agent, to make home available to show at reasonable times with reasonable notice and to provide accurate information regarding the property.  (Basically it states that you are the person legally allowed to sell this property.)
• Give permission to the Broker/Agent to market the property using whatever media and means necessary, including photographs, lockboxes and yard signs. 
• State the commission to be paid by the Seller.
• Define how a cooperating agent involved in the sale of the property will be compensated. (In other words, how another agent who brings the Buyer to the deal will be compensated - in most cases, your agent agrees to split his/her fee 50/50 with that other agent.)
• Require the Seller to provide the Broker/Agent with a "fully executed Seller's Property Disclosure Statement" within a given amount of time.  See below for more details on this document. 
• Allow the Seller and Agent to place additional conditions on this contract.  Example:  Perhaps the Seller's daughter may want to buy this home, but is still undecided.  This is an area where the Seller may include a special stipulation to exclude the daughter from the terms of the contract.  In the event she does decide to purchase the property, they will not be obligated to pay the Agent.

As with all contracts, the signature of all parties to this contract must be obtained.  If the home is owned jointly, then both owners should sign this and all contracts related to the sale of this property.

The Seller's Disclosure:

By law, a homeowner must disclose all known material defects on his/her property.  By hiding certain facts, they are opening themselves up to potential law suits later by any Buyer who feels that they have been duped.  Misrepresentation is an ugly and messy legal thing... avoid it at all costs.

The Seller's Property Disclosure Statement is completed by the homeowner.  It addresses such issues as:

• Occupancy:

  • If the property is vacant or occupied

• External Issues with soil and plants

  • Landfills, dead trees, encroachments etc.

• Exterior Issues with Roof, Gutters etc.

  • Age of roof

  • Any leaks

  • Any repairs to roof during ownership

• Termites, dry-rot and other unpleasant issues with wood-destroying organisms

  • Tricky stuff here.  The best bet here is to have a Termite Bond on your home...

  • Oh yes, this is where you disclose whether or not your home is under a termite bond (Buyers look at this, you see! If it isn't, they begin to worry that there may be termites.  We do live in the deep south,... notorious for our termite problem...)

• Structural Issues

  • Age of structure

  • Any additions or major improvements or structural changes?

  • Problems w/ driveway, retaining walls etc

  • Zoning compliance

  • And the tricky stuff... any synthetic stucco used in the exterior siding of the property. (In several parts of the country, synthetic stucco, improperly applied, caused severe problems for homeowners, causing huge lawsuits and a general negative attitude towards the stuff ever since... so much of a problem that it must now be disclosed to any potential buyer.)

• Drainage, Flooding, Moisture

  • Water leakage, accumulation, or dampness

  • Repairs made to address the above

  • Is Property located in Flood Zone (This is a BIGGIE around here!)

  • Past flooding problems?

  • Exterior siding moisture problem?

  • Mold?

• Plumbing Issues

  • Drinking water source

  • Type of sewage system

  • Knowledge of present or past leaks

  • Polybutyelene pipes?  (Another problem material that was the subject of lawsuits...)

• Other systems or components

  • Type of heating system, cooling system & water heater

  • Age of systems

  • Fireplace

• Toxic Substances

  • Asbestos, urea-formaldehyde, methane gas, radon, mold, benzene etc.

• Covenants & Fees

  • Is the property part of a community association

  • Fees associated with it?  Details.

• Other Matters

  • Any litigation involving Property

  • Any inspection conducted on Property

  • Property contain material that has been a part of any class action lawsuits?

  • Any flood, fire or other damage to Property?

  • Any repairs made to any electrical, plumbing, heating or air systems?

• Lead Based Paint Disclosure:  Any homes built prior to 1978 must complete a separate Lead Based Paint Exhibit!

Then, the Disclosure goes on to address the issue of FIXTURES.  A fixture is defined as something attached to a home.  This, however, is not always clear and prone to interpretation and problems.  So this disclosure statement gives the Seller the opportunity to state clearly what is or is not included in the sale of the home.

For homes built prior to 1978, there is a section covering the issue of Lead-Based Paint which then requires you to complete and attach a Lead-Based Paint Exhibit.  This is required by Federal Law and must be completed by the Homeowner and initialed by the Homeowner.  Upon making an offer, the Buyer must also initial this page stating that they have read and are aware of the potential presence or lack of lead-based paint. Even the Broker must sign initial and provide copies of Lead Based Paint information pamphlets regarding Federal Lead-Based Paint Disclosure.

This form is usually given to prospective buyers and then attached to any Purchase & Sale Agreement and signed by the Buyers.  It is extremely important that it is filled out as accurately as possible.  Once the Buyer signs it and attaches it to the contract, they are stating that they understand and accept all the issues pertaining to the property as stated in the Disclosure.