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An important part of being an informed buyer or seller in a real estate transaction is understanding the purchase contract. Before you sit down with an agent to make a written offer to purchase a home or receive an offer on your home, you should take a look at the real estate forms used in your area.

In some areas the real estate agents use standard contracts which have been approved by the local Board of Realtors. In other parts of the country, agreements that contain a significant number of clauses are drawn up by real estate attorneys. You should get a copy of the paperwork you will be signing so that you can read it at your leisure and absorb the information.

Don't hesitate to ask questions about anything that you don't understand; and if any of the standard clauses do not fit your particular situation, you can discuss the wording that you would like to have changed. The key is to familiarize yourself with the paperwork before you have found your new dream house or buyers for your home.

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