What is a Real Estate Purchase Agreement?

Man writing out a real estate purchase agreement

Buying or selling a home is a big deal with a large price tag on it. Like any legal deal, a contract outlining the unique specifications and details must be drawn up and signed by both parties. A real estate purchase agreement, also known as an agreement of sale, is designed to definitively outline the terms and conditions of a home sale. No matter the relationship between a buyer and seller, opting for a purchase contract is always a good idea.

Written Agreement

Having a written agreement will hold both parties accountable and protect each side if anything goes wrong during the sale. Real estate purchases come with a lot of papers and many details, especially if you’re selling and have multiple prospective buyers. First and foremost, the contract outlines at what price the home is being sold for and when it legally belongs to the buyer so that they are allowed to move in. It also details specifications, including what the contractor or seller is to complete or fix by the move in date.

How to Legitimize The Agreement

In order for a real estate purchase agreement to be legitimate, the home being sold or bought must be previously owned or finished with construction by the closing date of the contract. Financial analysis like Escrow terms, deposit details and insurance guidelines are also included in the agreement. Since life can be unpredictable, some contracts will provide options and terms for termination as well as conflict resolution protocol in case of any disagreements between the buyer and seller.

Have It Read Over

Although it’s not legally required, many buyers and sellers choose to hire a real estate lawyer to ensure everything included is legally correct during the drafting and signing process. Real estate contracts can get complex and hard for the average person to understand. Hiring a lawyer that is familiar with real estate agreements will also act as your guide to make the process more smooth and help both parties stay organized. If you’re moving to a new town, the lawyer will also know familiar and appropriate practices within that area.

Due to the complications and legalities that are included in selling agreements, hiring a real estate lawyer should prove to be a worthy investment. If you’re in the process of buying or selling and are looking for a lawyer, contact us at Dan Burke Attorney at Law today.

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