Entering the real estate market for the first time often feels like learning a whole new language—escrow accounts, contingencies, closing costs, and more. While each contract varies by region, there are certain clauses and conditions you’ll likely encounter, and knowing what they mean can prevent headaches down the road. Below, we’ll outline key points to watch for when scanning that contract’s dense paragraphs.

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1. Property Condition and Disclosures

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Some contracts specify that you accept the home “as is,” while others note required repairs or improvements. The term “as is” can mean you’re on the hook for any hidden defects discovered later—ranging from minor roof leaks to major foundational issues. If you see references to disclosures (like past flooding or mold), review them carefully to avoid buying into unforeseen repairs.

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2. Financing and Appraisal Clauses

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If you’re relying on a mortgage, your contract may have a financing contingency. This protects you if your loan application falls through. Check whether you need to lock in an interest rate by a certain date or provide formal approval from your lender. An appraisal clause ensures the property’s value matches the agreed-upon price; if not, you might renegotiate or walk away without losing your deposit.

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3. Inspections and Contingencies

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A good inspection contingency lets you back out or negotiate if serious problems pop up, such as plumbing issues or termite damage. Some contracts list specific inspections (pest, structural, radon, etc.). The timeframe matters—if you miss it, you may end up waiving your right to request fixes or a price reduction.

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4. Understanding Closing Costs

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At closing, you’ll likely pay a suite of fees—title insurance, attorney expenses, loan origination charges, and so on. If your contract is hazy on which party covers each cost, clarify it early. Surprise fees can inflate your final bill, so be sure everything is spelled out in black and white.

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5. Confusing Legal or Technical Jargon

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Real estate contracts can bury important details in long-winded paragraphs. Don’t be afraid to ask your agent or legal advisor to translate anything unclear, especially if it involves timelines or liability. Sometimes you just need that extra set of eyes to confirm you’re not signing up for more than you bargained for.

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ClariSign: A Simpler Way to Finalize Your Contract

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Even when you spot potential pitfalls, managing document revisions and signatures can get messy—especially if you’re emailing PDF attachments back and forth. ClariSign offers an intuitive, secure platform to keep every update in one place. Its AI-driven checks nudge you to confirm crucial clauses, so you’re less likely to overlook important details like appraisal contingencies or repair terms. And once you’re ready, you can collect e-signatures without juggling multiple files or losing track of what’s been signed.

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Ready to lock in that dream home without drowning in paperwork? ClariSign helps you finalize every detail so you can move forward with confidence.