The Terms of Agreement of Sale is a document that specifies the terms in which the ownership of property is conveyed from one owner to another. In real estate transactions, a home cannot be bought or sold unless both sides agree to the Terms of Agreement of Sale. Many issues are covered in this document and changes or additions can be made to this document. However, these changes or additions only become valid if the other side agrees to them. Important components of the Terms of Agreement of Sale include:

· Sale’s Price: The amount of money exchanged for purchasing the property.

· Title: The seller should provide the legal ownership of the house, or the title, to the buyer with no other claims by others that they have ownership over the title.

· Mortgage Clause: A clause should be included stating that your deposit will be refunded in case the sale has to be cancelled because you are unable to secure a mortgage loan.

· Pests: A certificate should be required from the seller stating that a qualified inspector has agreed that the home is free of pests and pest damage.

· Miscellaneous: What appliances and personal property will be sold with the home.

· Move-in Date: The date where you are able to move into the home and it officially becomes yours.

· Home Inspection: A clause stating that the terms of agreement will be voided if home inspection brings about negative results should be included in the Terms of Agreement of Sale. Home inspection will help determine the condition of the plumbing, heating, cooling, and electrical systems. Additionally, home inspection will also determine the physical condition of the home, such as the roof, siding, windows, and doors.

· Sharing of Expenses: Issues over how expenses related to the property like property taxes, water and sewer charges, and utility bills, will be divided between the buyer and seller should be clarified in this document.

· Settlement Costs: Settlement costs and how they will be divided between the buyer and seller should also be clarified in this document.

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