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