A well-drafted and negotiated purchase agreement is an important part of any real estate transaction. For that reason, to help conduct a successful real estate transaction, the parties should be familiar with what should be included in a purchase agreement.
What should be included in a purchase agreement?
There are several important components of a purchase agreement including:
- The basics – the basics of the deal include the parties to the deal and the type of sale which should be enumerated at the beginning of the purchase agreement. The full names and physical addresses of the parties should be included as well as a description of the property being sold. It should also include the dates of the initial agreement, any other dates when parts of the contract should be completed, if any deposit was paid and the date of final closing and transfer of ownership.
- The property – a completed description of the property being purchased should be included which should also detail any deficits in the property.
- Financing – the nature of the financing for the purchase should be included such as a mortgage or loan. The agreement should outline the basic financial terms necessary for the sale. Timelines for financing and termination of the agreement if financing is not procured should also be included.
- Ownership – an affirmation that the seller has the right to sell the property should also be included.
Other addendums and components of the purchase and sale agreement may also be included. Knowing how to structure a purchase agreement and what to include is valuable information for parties to the purchase and sale of real estate to have to help them enjoy a successful transaction.