| A real estate purchase agreement is a vital | | | | inspection.c. Appraisal - It is to the |
| written document required in the purchase and | | | | advantage of the buyer if the seller provides |
| or sale of a property. It is also referred to | | | | an appraisal report on the property during |
| as a real estate contract involving two | | | | negotiation. However, the buyer also has a |
| parties - the buyer and the seller. In the | | | | right to ask for his or her own appraisal to |
| U.S., these agreements are required by law to | | | | make sure that what he or she is buying is |
| be in writing to be considered legally | | | | within a fair market value and not |
| binding. | | | | overpriced.d. Another sale - This means that |
| | | | the purchase or sale of a property is |
| The document contains several important | | | | contingent on the sale of another real estate |
| details such as the legal description of the | | | | property. It is a reality that some buyers |
| property including the address, the purchase | | | | negotiate on purchasing a new home while |
| price, earnest money or deposit, inspections | | | | their own property is still in the selling |
| done, information on buyer financing and the | | | | stage as well. It is only when their home is |
| timeframe for the buyer to obtain financing, | | | | successfully sold that they can finance the |
| closing date and time as well as the | | | | purchase of a new property.e. 72-hour |
| appliances and fixtures included and excluded | | | | timeframe - This is usually a contingency |
| in the sale of the property concerned. | | | | provided by the seller in which he or she |
| | | | accepts a contract on condition that the |
| Parties involved - A real estate purchase | | | | potential buyer looks for a buyer or renter |
| agreement must identify the names of the | | | | of their own property to purchase the new |
| seller and buyer who are also called | | | | home. The seller here gives a 72-hour notice |
| principals. Only persons in a stable mental | | | | to buyer to scrap their contingency and |
| condition can enter into a contract. | | | | continues to hold the right to sell the |
| | | | property. If the buyer can prove that he or |
| Property information - A legal description of | | | | she can purchase the property, the |
| the property must be stipulated in the | | | | contingency will be removed. If not, the |
| contract including the specific address. | | | | buyer will release the seller from the |
| | | | contract and allow him or her to accommodate |
| Purchase price - This refers to the amount of | | | | a new contract. |
| the property's selling price or an estimated | | | | |
| value in the event an appraisal is still | | | | Closing - This is the date and time of |
| forthcoming. | | | | closing when ownership of the property is |
| | | | transferred from the seller to the buyer. A |
| Signatures - The seller and the buyer should | | | | different date may be stated for physical |
| affix their signature on the contract to make | | | | possession of the property. The closing also |
| the document enforceable. | | | | specifies which party will shoulder the |
| | | | closing costs. |
| Contingencies - Most purchase agreements | | | | |
| include contingencies of various kinds to | | | | Fixtures - This refers to the appliances, |
| protect the parties involved.a. Mortgage - | | | | furnitures and fixtures that the seller wants |
| This is one of the most common contingency | | | | to include or exclude in the sale of the |
| which normally requires the buyer to secure a | | | | property. |
| loan within a specific time after the | | | | |
| contract signing.b. Inspection - Most buyers | | | | These forms can be purchased and downloaded |
| want to make sure that the property they are | | | | over the internet. It is always recommended |
| purchasing is free from material defects this | | | | that you have an attorney look over any |
| is the reason why they require a satisfactory | | | | important document before signing. |