Key Elements of a real estate purchase agreement

September 8, 2018 | Author: | Posted in Realestate

If you are interested in putting your property up for sale by owner or if you’re looking to purchase a house without the help of a realtor, you must ensure the real estate purchase agreement is devised properly.

Key Elements of a Real Estate Purchase Agreement

Navigating the home buying or selling process does not have to be difficult. Knowing the key elements of real estate purchase agreements is valuable knowledge that will help you make sure that the agreement is satisfactory for both buyer and seller. Here are the key elements each agreement must have according to Legal Nature and Realtor.com:

  • Listed address and all parties involved. The real estate agreement must have the legal address of the property displayed which includes a description of said property. All parties must be listed on the document too including the seller and the buyer, specifically whether the buyer is purchasing the property alone or if joint tenants will co-own the home.
  • Real estate price and terms of purchase. The agreement must also list the agreed upon price for the property. This information will include the earnest money requirements and the extent to which the seller provides furnishing within the purchase cost.
  • Listed closing date and closing costs. The anticipated date of the closing needs to be listed and information that states any changes to this date must be approved mutually. All associated closing costs that the buyer and seller must pay should also be referenced.
  • Other property taxes and real estate assessments. The agreement must list all costs belonging to responsible parties.  This includes costs like homeowner’s association fees and maintenance fees.
  • All other included or excluded items. Parties may list other included or excluded items that must be provided prior to the closing, such as repairs or replacements of structures and fixtures.
  • All legal disclosures. The agreement is legally obligated to list all disclosures that can impact the safety or the value of the property being sold.  This includes issues of damages, the presence or previous presence of gas or chemicals and all personal interest disclosures.
  • All contingencies. The agreement must list all contingencies for the sale regarding issues that may arise from the inspection, appraisal, financing and title investigation.
  • Defaults and counteroffers. The agreement will also list ways in which the buyer defaults on the contract.  It will also list in which ways a seller can present a counteroffer to the buyer.

Real Estate Purchase Agreements

Knowing the key elements of real estate purchase agreements will help you buy or sell your property.  By listing all legal, ethical and financial information, you can assure that both the buyer and seller will complete the transaction fairly and satisfactorily.

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About Author
Sunwest Escrow, Inc. is a customer-oriented servicer of private mortgages, real estate contracts, and other installment type notes. Sunwest Escrow, Inc. was formed by the owners of Sunwest Escrow, LC in order to provide a wider range of financial products. Defined simply, an escrow is a deposit of funds, deeds, or other instrument(s) by one party for the delivery to another party upon completion of a particular condition or event.

Author:

Sunwest Escrow, Inc. is a customer-oriented servicer of private mortgages, real estate contracts, and other installment type notes. Sunwest Escrow, Inc. was formed by the owners of Sunwest Escrow, LC in order to provide a wider range of financial products. Defined simply, an escrow is a deposit of funds, deeds, or other instrument(s) by one party for the delivery to another party upon completion of a particular condition or event. In some cases, escrow is short-term, such as the deposit of earnest money pending the closing of a real estate sale. In other cases, escrow is long-term, where an instrument—such as a deed—is held for an extended period while installment payments are made against the purchase of an asset. The escrow is not closed and documents released until all conditions of the escrow agreement are met.

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