A sales contract is the document that both the buyer and seller sign in order to officially bind the offer. The sales contract includes pertinent language such as the cost of the home, the down payment amount, any concessions offered, applicable waiting periods and other critical terms. Buyers typically have a sales contract evaluated by their attorney in order to determine if other language needs to be inserted to protect the buyer. Often, sales contracts are revised several times before the official closing date because the buyer and seller may have compromised on certain items such as repairs to be made to the home or the amount of closing costs that will be paid by the seller. A sales contract is a vital piece of the home buying experience, and both parties typically review it thoroughly before signing it.
