What is a Purchase Contract?
A purchase agreement is a legal contract for real estate or for the sale of any goods or services, it informs the seller and buyer about the terms and conditions of the transaction such as the payment amount, information about the property or product to be sold. This type of agreement is typically used for complex transactions that involve many steps and conditions such as a contract deposit then due diligence, inspection and then an application for a mortgage loan, etc.
What do you need to know before signing a Purchase Contract?
- When should I use a Real Estate Purchase Agreement?
It is recommended that you enter into a purchase agreement when you are buying any property that has a lot of fixtures and construction on it such as buildings and other facilities. You should also sign a purchase agreement when you buy a previously owned or used property.
- Does a purchase and sale agreement need to be notarized?
Most of the legal documents related to real estate are required to be notarized to be deemed enforceable and valid under the law. Therefore, it is important that you appoint a notary to witness the contractual agreement and the signatures on the Purchase and sale agreement.
- How long does the Purchase agreement remain valid?
Generally, most purchase agreements remain valid for 2-3 days but the validation period might be shorter or longer than this depending on various factors. Therefore, It is recommended that you ask the seller how long he is willing to wait for the inspection and due diligence and if he is willing to wait for the mortgage application approval if there are any.
- What happens after signing the purchase agreement?
If the buyer has made a contract deposit and the seller has accepted it then the buyer will be transferred the rights to ownership after full payment provided that he has not violated any terms of the agreement.
- What should I include in a purchase agreement?
The most important details on a purchase and sale agreement are regarding the property being sold such as its location, price, condition, size and other legal description. Along with this, the identity information of both parties and the payment terms and methods should also be clearly stated.
Create Purchase Contract Form
Purchase Contract – Sale Purchase Agreement Form
County of: ___________
State of: ____________
This Purchase contract is executed on [EXECUTION DATE] by and between the seller [SELLER NAME] and the Buyer [BUYER NAME] for the Property located at [PROPERTY ADDRESS].
WHEREAS: The seller wishes to sell his property for the amount of [ENTER CURRENCY], [ENTER PAYMENT AMOUNT].
WHEREAS: The buyer wishes to purchase the property from the seller for the aforementioned price.
NOW, THEREFORE, Both parties agree to the following:
1.1 The property is being purchased as an “as is” property, meaning it is to be purchased in its current condition with all the current faults and damages.
1.2 The property has an approximate area of [ENTER AREA], [ENTER AREA UNIT].
- PAYMENT TERMS
[ENTER PAYMENT TERMS]
3.1 The seller hereby warrants that there are no legal impositions, liabilities or liens on the property and he is not omitting any type of information which exists which may adversely affect the ownership rights of the buyer.
3.2 The buyer agrees to not hold the seller liable for any future impositions, liabilities or liens unless they were incurred due to the previous activities of the seller and were deliberately omitted by the seller.
3.3 The buyer warrants that he has conducted a thorough inspection of the property beforehand and accepts that the house is in good order and satisfactory conditions.
Both parties accept this contract as a legally binding and enforceable document by signing this agreement below:
Notary Signature & Seal_______________________
My commission Expires:______________________