The purpose of a real estate purchase agreement is to protect both sellers and buyers. It includes the details of every property sale element. But it can be challenging to understand a document that is usually quite long and full of legal jargon. You must comprehend everything before you sign on the dotted line, though. So, here are the most important parts of a real estate purchase agreement to make things easier for you.
Using Real Estate Purchase Agreement Templates
You can make the process of creating and reading through a purchase agreement much easier and quicker by using a real estate purchase agreement PDF template. The form walks you through each step so that you can fully understand each section as you work your way through the document. It is set up with blank spaces for you to fill in each specific piece of information, such as the buyer and seller names, the purchase price amount, and what fittings are included in the sale of the property. Now, let us take a look at the essential parts of a real estate purchase agreement in more detail.
Address and Parties
The first most crucial part of a real estate purchase agreement is an outline of the property in question. The agreement must state the property’s exact address and contain a clear legal description of the residence. It must also assert the identities of the sellers and buyers.
The next most important element to be included in the purchase agreement is the offered price accepted by the seller. Details of how the property is being paid for, such as with a cash down payment or an existing mortgage, also need to be detailed.
Closing costs for both the buyer and the seller should be included. Often, the buyer covers all of the closing costs. But sometimes the buyer and seller split the closing costs. How the division of expenses is used for closing costs should be clearly described in the agreement.
The next item in the agreement to be detailed is the date of the sale’s closing. Typically, possession of property transfers to the buyer at the designated closing date and time. The closing date also marks the conveyance of the property title from the seller to the purchaser.
In some states, classified homestead properties qualify for significant tax reductions. If this applies to your property, it should be outlined in the purchase agreement.
Fixtures and Fittings
The next inclusion concerns the fixtures and fittings that are included or excluded from the property sale. That could include items like doors, lighting fixtures, and built-in kitchen appliances.
The purchase agreement needs to outline when the agreement expires if it is not accepted. Prior to that date, a buyer can withdraw from the agreement, providing he or she gives satisfactory notice.