Understanding a real estate agreement is easier said than done. This is true regardless of if you are buying or selling a property.
Before you sign on the dotted line, it is essential to understand each and every point associated with a real estate agreement. If you don't, you could agree to something that is not in your best interest.
Misinterpretation can cause a variety of problems, including a burden on your finances in the future.
If you don't understand a particular point of a real estate agreement, it is best to focus on this before moving forward. You can learn more on your own, while also asking your realtor and/or real estate attorney for assistance.
It is important to read through the agreement, front to back, focusing on every detail. If anything looks out of the ordinary, make note and then double back on this before moving forward.
In addition to understanding your rights and responsibilities, you should also focus on what is expected of the other party.
Last, but certainly not least, understand the contract withdrawal terms. How can you get out of the agreement? How can the other party get out of the agreement?
If you don't understand the finer details of a real estate agreement, it could cause you a lot of stress in the future. When you have a firm grasp of what you are doing and what is expected of you, it is easier to sign the contract with confidence. This will put your mind in the right place as the transaction is completed.
Source: SFGate, "How to Understand a Real Estate Contract," accessed April. 07, 2015