Real Estate listing and purchase contracts are involved binding legal documents. You should make sure you review the entire document carefully with your Realtor and if there are any areas you are unsure of, you should obtain legal advice before signing.

The following is a general overview of some of the more common areas of legal interest when selling a home.

Authority

Obviously you must have the legal authority to sell the home. This generally means that if there are 2 or more people on title, they all must agree to sell and will generally all need to sign the contracts. One scenario that is not as obvious is when a married or separated person has a home in only their name. In most cases they must get permission from their spouse to waive the spouse's "dower rights" in order to sell the property. You should seek the advice of a lawyer if such a situation exists.

Goods

Unless otherwise stated, anything "attached" to the house (such as a ceiling fan) or property (such as a fence) is assumed to be included with the home and anything not attached (such as the furniture) is assumed to be excluded. Therefore if there is something you don't want to sell that is attached, be sure it is written clearly into the contract.

Warranties

When someone buys a house, they expect everything to work properly and for the property to be free of problems, and in a typical contract you will promise just that. If there is an element on your stove that does not work, and you sell it with the house without mentioning the problem, you will likely be on the hook to have it repaired at your expense.  If you are aware of something major, such as a leaky basement or an environmental problem, and neglect to mention it in the contract, you can expect to be sued. Be clear and upfront about all issues, and put them into the contract. Even some minor "issues" improperly disclosed can cause big problems. A highly trained Realtor can help you identify potential liabilities and can ensure you are properly protected.

You will have to provide a mountain of various condominium documents or, in the case of a non-condominium, a Real Property Report in order to prove that the structures built on the property comply with all the applicable bylaws and don't encroach on the neighbor's property or a city right of way. If the documents show otherwise don't panic, there usually are several solutions to deal with it. Be sure to get the documents early on to give the lawyer enough time to work out any problems and to avoid a rush should the home sell quickly. A good Realtor will assist you in obtaining all the necessary documents.

Conditions

A common part of a purchase contract involves conditions. Usually the buyer will place a financing and/or a home inspection or other condition on the sale. This in effect prevents you from selling to anyone else until the conditions are either met and "waived" by the buyer causing the home to be sold, or they expire (condition not met) and the contract dies. As a seller you like to see as few of these as possible, and when you do, as short a time as possible for the condition to expire (and the fate of the sale to be known).

Although less common, a seller can also place conditions on the sale. Conditions are for the benefit of whoever insists on it and can be as unique as required. For example you could have a condition that allows you 3 weeks to find an alternate home to buy, and if you can't find one the deal's off and you keep your existing home. This particular condition can sometimes be a better alternative to a "special clause" condition (see below).

Special Clause Condition

There is a special type of condition that a buyer will sometimes place into a contract known as the "Sale of Buyer's Home" condition, sometimes referred to as a "Special Clause" condition. It is "special" because unlike a regular condition, the seller is not prevented from selling their house to someone else. Here's how it usually works:

The buyer agrees to put their existing house up for sale by an agreed date at an agreed price (or less). In exchange the seller agrees to tell the buyer when another purchase offer has been accepted (conditional on the collapse of the first sale). The buyer then has a set amount of time (usually 48 hours) to waive all conditions (not just the special clause) and agree to a firm sale of the sellers house. If the buyer doesn't then the deal collapses and the seller satisfies the condition with the second buyer.

While it can be the best option at times, a special clause condition  is not always a great thing for either the buyer or the seller. If a second offer comes in the buyer may lose out on the home they wanted or, if they waive all conditions, may be bound to a purchase they aren't comfortable with because their existing home hasn't sold yet (the exact scenario they were trying to avoid in the first place).  The seller also has no guarantee that the buyer's existing home will sell, and therefore no guarantee their house will sell. Even though they can continue to market the home, many potential buyers may not even come to see it because they don't want to go through the hassle of writing an offer and negotiating a contract just to have the first buyer kill it a day later.