A condominium is often mistaken as a type of construction or development. It is actually a type of ownership in real estate property where all of the owners own the property, common areas and the building together. The interior of the unit is owned individually, and the owner has a title to it.
A sales contract is a contract of sale for the purchase and sale of real estate property. The contract stipulates the price to which the buyer agrees to pay and the seller agrees to convey the title to the property by way of deed or an assignment of lease. It is an enforceable document which binds both parties outlining the mechanics of the transaction. It is the blueprint of the entire transaction.
A condominium sales contract is much like any real estate property sales contract, only the property to be conveyed is a condominium.
A condominium sales contract covers the following legal topics:
Details regarding the property, description of the property and exact address.
Condition of the property, usually referred to as property disclosure which includes information on unit improvements
Provisions relating to earnest money, amount, initial payment, terms, rate of interest etc.
Contingency clauses including financing and inspection of the property
Provisions governing what happens if property is not delivered at closing and other kinds of default
Limitations and conditions of ownership also including covenants, encroachments, liens and encumbrances.
Whether the seller or buyer pays or receives a credit for property taxes, condominium special assessments and similar expenses.