Sales of Agreement in North Carolina: Understanding the Basics

If you are considering buying or selling a property in North Carolina, it is important to understand the laws surrounding sales of agreement. A sales of agreement is a legally binding contract between a buyer and a seller that outlines the terms and conditions of a property sale. In this article, we will discuss the basics of sales of agreement in North Carolina.

What is a Sales of Agreement?

A sales of agreement is a contract between a buyer and a seller that outlines the terms and conditions of a property sale. It includes details such as the purchase price, closing date, and contingencies. A contingency is a condition that must be met for the sale to be completed, such as a satisfactory home inspection or the buyer securing financing.

Sales of Agreement in North Carolina

In North Carolina, sales of agreement are governed by the North Carolina General Statutes Chapter 47, Article 2. According to this statute, a sales of agreement must be in writing and signed by both the buyer and seller.

The sales of agreement should include the following information:

– The purchase price of the property

– The closing date

– Any contingencies that must be met

– The amount of the earnest money deposit

– The responsibilities of each party

Earnest Money Deposit

In North Carolina, the buyer is required to provide an earnest money deposit. This is a sum of money that shows the buyer`s commitment to purchasing the property. The amount of the earnest money deposit is typically 1-5% of the purchase price.

Contingencies

Contingencies are conditions that must be met in order for the sale to be completed. In North Carolina, common contingencies include satisfactory results from a home inspection, the buyer securing financing, and the seller providing clear title to the property.

Closing

Closing is the process of transferring ownership of the property from the seller to the buyer. In North Carolina, the closing date is typically set in the sales of agreement. At closing, the buyer will transfer the balance of the purchase price to the seller, and the seller will give the buyer the keys to the property.

Final Thoughts

Sales of agreement can be complicated, and it is important to consult with a real estate attorney to ensure that your contract is valid and enforceable. If you are a buyer or seller in North Carolina, understanding the basics of sales of agreement is essential to a successful property sale.