What seller or buyer obligations does a property purchase agreement usually have?

The buyer and seller will each need to fulfill their obligations under the purchase agreement and meet any other state law requirements. This could include some or all of the following items: Title policy Appraisal Property inspections Seller disclosures (e.g. lead paint disclosure) Property repairs and updates Required permits Other buyer or seller contingencies (e.g. prior home sale, financing, etc.)

What is a property purchase agreement?

A property purchase agreement is a type of contract that dictates the terms of a sale between a buyer and a seller. Since each sale will have particular needs according to the property that is being transferred, the terms of a property purchase agreement must reflect the specific needs of the parties. For example, if the property being sold requires substantial repairs, the agreement would need to identify the party responsible for said repairs.

How does a property purchase agreement benefit me?

A well-drafted property purchase agreement will benefit all parties. By allowing the parties to iron out the most important details of a sale, a property purchase agreement provides a reasonable amount of protection from unforeseen circumstances that can come up when buying or selling property, especially real estate.

What warranties can a property purchase agreement have?

A property purchase agreement can contain a wide array of warranties, such as a "No Litigation" clause, a "No Rent Control" clause, and a "No Other Agreements" clause. That said, the agreement cannot waive state law requirements pertaining to mortgages and other financing issues. It's important that all of the parties fully understand all warranties and waivers before signing.

What are some of the key elements of a property purchase agreement?

Although all the clauses of a property purchase agreement should be thoroughly read and understood, some of the most important elements of this type of agreement include: Closing costs Financing terms Possession date Down payment requirements Buyer contingencies Necessary repairs Grounds for termination

Property Purchase Agreement

A property purchase agreement helps you state all of the important details, including the full names of the parties, the location of the property, the purchase price, and any other specific promises of the parties.

This contract is vital for solidifying the parties’ intentions and bringing the deal through to a closing. Use our property purchase agreement template to list all of the important terms in a real estate transaction between a buyer and seller.

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When to use a property purchase agreement

You need to set a purchase price for the sale of property
Clearly define the buyer's contingencies and any financing details
Decide whether or not the buyer will assume any leases or tenancies
To determine any repairs that need to be made before the sale is complete

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Purchase or sell a property with confidence

Create a property purchase agreement tailored to your specific needs.

Define every detail

Make sure all parties in a purchase agreement have a clear understanding of all sale or property-related details.

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Clearly set expectations

A well-drafted property purchase agreement allows all parties to define any matter related to the property and its purchase.

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How to create a property purchase agreement in 3 steps

Gather Basic Information

Begin by providing the information for each party, including the names, party type, and addresses. If the seller acquired the property being sold during marriage, then indicate the sellers are a married couple. This simply requires the seller's spouse to sign this agreement to show that the spouse will not make any claim to the property in the future.

Enter and Review the Terms

Some buyers might require that the property purchase agreement contain certain contingencies. A contingency is a condition that the buyer requires to occur before the buyer will close the deal. If a contingency is not satisfied, the buyer will be entitled to cancel the agreement and receive a refund of the earnest money and any other deposits made.

Execute the Agreement

To execute the agreement, the parties simply sign and date it in the presence of a notary or witnesses. Most states just require one notary to act as a witness. The main requirements for witnesses are that they are 18 years of age or older and have no stake in the outcome and are not related to either of the parties by blood.

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