Buying or selling a property is an exciting time. But it’s also a very tedious process involving many contracts, agreements, and other paperwork. This paperwork will ensure that everything is legally binding and both parties are protected throughout the sales process.
Now, if you’re looking for a new office or selling an existing one, it’s imperative to be smart about contracts. One of the most important contracts that you’ll need to fulfill is the real estate purchase agreement, and here’s everything that you need to know about it:
What is a real estate purchase agreement?
From its name, a real estate purchase agreement is a legal contract that outlines the terms agreed upon by the buyer and seller in a real estate transaction. Simply put, it’s a contract that’s created for the purchase of a property.
A real estate purchase agreement is critical because it has all the necessary details in the sale of a property, including basic information like the address, price, and any contingencies that come with the agreement.
The most important components of a real estate purchase agreement include the following:
- The information of the buyer and seller. Both parties’ information should be filled in the agreement, including full names, addresses, and telephone numbers.
- The details of the property. This includes all the vital information about the property, including its complete address, a detailed property description, and other essential information about the transaction.
- The price of the property. The price that was agreed upon by both the seller and buyer should be laid out in the real estate purchase agreement. All other fees and costs related to the transaction should also be included in detail to ensure transparency for both parties.
- Warranties and representations. The agreement should contain all the statements of facts from the seller about the property’s structure, condition, and composition up for sale.
- Title insurance. The agreement should specify whether the buyer or seller should purchase title insurance in case there are discoverable effects on the property through inspection.
- Source of funds. The document should include the details about the financing of the buyer. This should specify whether the buyer will pay in cash, apply for a loan, or borrow money from a lender.
Who prepares a real estate purchase agreement?
In most cases, the buyer’s real estate agent writes up the real estate purchase agreements. But it’s crucial to remember that since these documents are legally binding, they’re primarily pre-existing documents that are created by lawyers that specialize in real estate purchases. The agents just fill in all the information needed to complete the real estate purchase agreement.
Buying or selling a property is definitely a long and sometimes tedious process. But there’s always the option to team up with real estate experts, like Levi Smith from PA Commercial, LLC, who can help you find properties, negotiate for prices, create documents like this real estate purchase agreement, and fulfill other tasks that will allow you to close the sale without going through so much stress. Reach out to Levi Smith today and let an expert assist you!