Before any transactions are possible, the buyers and sellers agree to the price of the property and the sale terms. The purchase and sale agreement provides an underlying framework for negotiations. Typically, such contracts are applicable for a significant purchase like a property. It’s usually prepared by an independent third party to ensure that the transaction closes without any issues. In addition, it records when a purchase is completed.
At the heart of a purchase and sale agreement is the consideration. This is the price agreed upon by both parties for the property. Aside from basic information about the property, it also includes details such as closing dates, contingency clauses, and other essential conditions for completing a transaction, such as what happens in case a buyer fails to close within the agreed-upon timeframe.
In addition to providing legal clarity on all aspects of the sale, purchase and sale agreement can also help protect the parties involved in the transaction. For example, it may include a legal dispute resolution clause outlining how conflicts should be resolved if they arise during or after the sale process.
While the specifics of a purchase agreement can vary depending on the property, there are some general terms and conditions that should be included in most sales contracts. These include the final sale price for the real estate asset, the closing dates and deadlines for completing various stages of the transaction, and the confirmation that the seller and buyer acknowledges and agrees to the terms of the agreement. It can also include whether a deposit or earnest money is required to be placed in a separate bank account or custodial escrow account.
Some of the key terms and conditions that may be included in a property purchase agreement include:
" Undoubtedly one of the best eSignature application available in the market right now. Would love to recommend Fill. "
Ready to get started
with this template?