As a real estate professional, navigating the multitude of forms involved in property transactions is an essential part of your job. Whether you’re helping clients buy, sell, or lease, accurate and timely completion of real estate forms is crucial to ensuring legal compliance and protecting your clients’ interests. From the listing agreement to closing documents, these forms provide the framework for every transaction and help keep the process running smoothly.
In this guide, we’ll walk through the essential real estate forms you’ll use regularly, including sales contracts, disclosures, and deeds. We’ll also cover best practices for using these forms, highlight common mistakes to avoid, and explore state-specific requirements that may affect your transactions. Understanding these forms is vital to providing exceptional service to your clients and ensuring successful, legally sound real estate transactions.
Forms All Professionals Should Know
Sales Contracts and Purchase Agreements
The sales contract, also known as a purchase agreement, purchase offer, or sales agreement, is the foundation of any real estate transaction. This legally binding document outlines the terms and conditions of the sale, including the offer price, contingencies, financing details, and closing timeline. As a real estate professional, your role is to ensure the sales contract reflects your client’s best interests while adhering to state laws.
Key components typically included in a sales contract:
- Purchase price and financing terms
- Contingencies for inspections, appraisals, or financing
- Closing date and possession date
- Earnest money deposit details
In most states, this document will guide the settlement agent and/or attorney handling the escrow process, ensuring all the conditions—such as inspections, disclosures, and financing—are met before closing.
Listing Agreements
The listing agreement is another essential form used to define the relationship between the seller and the real estate agent. This document sets forth the terms under which the agent will list the property for sale and earn a commission.
Different types of listing agreements include:
- Exclusive right to sell: The agent is the sole representative for the seller and will receive a commission even if the seller finds a buyer independently.
- Exclusive agency: The agent is the sole representative, but the seller can find their own buyer without paying a commission.
- Open listing: Multiple agents can list the property, and only the agent who finds the buyer receives the commission.
The listing agreement is the basis for how you’ll operate as a real estate professional throughout the transaction, so it’s important to ensure clarity on commissions, responsibilities, and expectations.
Disclosures
Disclosures are one of the most important aspects of real estate transactions, as they protect both the seller and the buyer. Sellers are legally obligated to disclose any known defects or issues with the property that could affect its value or the buyer’s decision to purchase. These forms vary by state, and failure to disclose pertinent information can lead to legal consequences.
Common disclosures include:
- Seller’s property disclosure: A document where the seller outlines known issues with the property.
- Lead-based paint disclosure: Required by federal law for homes built before 1978, detailing the presence of lead paint or potential risks.
- Radon disclosure: In some states, sellers must inform buyers if radon testing was conducted or recommended.
Additionally, in many states, sellers must provide disclosure documents to buyers once an offer is accepted, giving the buyer a chance to review the documents and perhaps back out if they discover something unfavorable about the property.
In a few states, sellers must actually provide disclosure before an offer is accepted.
Deeds and Title Documents
The deed is the document that actually transfers the property to the buyer. While state law will dictate some of the details, you always get to choose how you “take title.” The most common forms are: individually, in trust, as joint tenants, or as tenants-in-common. The executed deed is then given to the county recorder and becomes part of the public record.
Clear title is necessary for any property transaction to take place. To ensure this, a title insurance policy is required to protect against issues like fraud or recording errors. Most transactions will also require an affidavit of title or seller’s affidavit to confirm the seller’s ownership and disclose any potential title defects such as liens, leases, or boundary disputes.
Transfer Tax Declarations
Many states, counties, and municipal governments impose transfer taxes on real estate sales. As a real estate professional, it’s important to inform your clients that they will be required to sign declarations detailing the purchase price and the calculation of the transfer tax. While this may seem like an additional step in the process, the good news is that the closing agent or attorney handling the transaction will provide all the necessary forms, ensuring the process is smooth and compliant with local regulations
Loan Documents
Obviously, in an all-cash transaction, loan documents are not required. If a lender is involved, they will have specific document requirements (many of them legally mandated). Most will require copies of the sales contract, as well as any counter-offers or addenda. They will also want a copy of the title search and escrow instructions. At closing, buyers must sign a promissory note, promising repayment of the full loan amount, as well as a Deed of Trust (or Trust Deed). This document links repayment of the loan with the title (ownership) of the property. This is what allows the lender to foreclose if the buyers fail to repay the debt.
Lenders used to have to provide a Settlement Statement or HUD-1 form, but this requirement has recently been superseded by the “TILA/RESPA Integrated Disclosures” or TRID.
In any case, your lender will provide all the necessary forms, so these are not something you will need to provide or worry about.
Best Practices for Using Real Estate Forms
Ensure all forms are filled out accurately and completely. Leaving sections blank or submitting incorrect details can lead to delays and legal issues. Always double-check for accuracy.
Timeliness is crucial in real estate transactions. Missing deadlines can delay the entire process or even cancel the deal, so be sure all necessary forms are submitted on time.
Real estate forms can be complex, especially with varying state laws. It’s often best to consult with attorneys or title agents to make sure everything is completed correctly and your client’s interests are protected.
