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