

| Below are some of the decisions that you may face when either writing or receiving a contract. A contract (and all modifications) must be in writing and signed. Both husband and wife must sign for community property to be obligated. "Offer" is an expression of a willingness to enter into an agreement. May be withdrawn anytime before acceptance "Acceptance" is a manifestation of assent to terms of an offer. Any change to the terms becomes a counteroffer (and the original offer is rejected). An offer that has been accepted cannot be withdrawn. "Consideration" may be earnest money (most widely used), "for $10 and other valuable consideration" or a promise for a promise. "Sufficient Specificity" contains all the parties legal rights and obligations regarding the transaction, must be clear and contain all the terms of the transaction. Parties - identify the buyer and the seller. Both should be adults (18 or older) and competent. Property Description - Identifies the property - ideally, the legal description Fixtures and Personal Property - In addition to identifying the land, all personal property to be conveyed and any fixtures that could be an issue need to be identified. Purchase Price - The terms of payment and the amount of the purchase price, earnest money, down payment and any financing contingency should be specified Close of escrow - After all the papers have been signed, monies exchanged and the deed has been recorded. Both parties will likely make significant plans based upon the close of escrow date. Contingencies - a clause that requires the completion of a certain act before the parties are obligated to perform their contractual obligations - such as a mortgage loan or a successful close of escrow on the sale of another home. |

