Purchase agreements cover all aspects of a sales transaction. They contain information about the buyer’s and seller’s legal rights and duties. Essentially, a purchase agreement governs the sale of products (service agreements cover services).
Real estate purchase agreements may be drafted later in the negotiation process and finalize the transaction’s terms.
A real estate purchase agreement is a type of contract that is created during the purchase or sale of a residence. Contracts govern the terms of sales and provide guidance on the duties, rights, and responsibilities of each of the parties involved.
The majority of states require that real estate purchase agreements describe the property in a specific manner, although each state has slightly different laws. Such descriptions must include measurements and boundary lines but must not include any landmarks on the property that may change over time, such as a garden statue or bird bath.
Additionally, it should be noted that a real estate purchase agreement may involve several different parties, such as the buyer, seller, their respective real estate agents, loan agents, zoning officials, and housing inspectors. Most of these agreements, however, will only bind the buyer and seller.
Contact a local real estate lawyer for more information about real estate purchase agreements and the types of legal issues you should watch out for. Knowledgeable real estate lawyers can guide you on topics related to your matter and ensure that you comply with local laws.
Purchase agreements for real estate can often be different from agreements for other types of sales. Because real estate is unique and “one-of-a-kind,” the terms of the sale must reflect this aspect.
Important information may be included in real estate purchase agreements, such as:
Additionally, the agreement can include many other terms and provisions as needed by the parties. In some cases, the document can be quite complex and may require the oversight of a legal professional during drafting. It is possible for disputes to arise over any of these factors and terms.
When entering into a real estate purchase agreement, buyers and sellers should be aware of several important terms.
Although these terms may vary depending on the laws of a particular jurisdiction, most real estate purchase agreements include several basic terms.
Typically, these terms will include:
It is important for the parties to understand these terms and provisions before entering into a real estate purchase agreement in order to avoid costly mistakes, providing fraudulent information, and preventing miscommunications or ambiguities. For further guidance on drafting and reviewing real estate purchase agreements and their terms, parties should also consult a real estate lawyer.
Before entering into a real estate purchase agreement for the sale or purchase of a home, both parties should prepare themselves properly. If either party has questions about the agreement or the obligations that were determined during the negotiations, they should consult their respective real estate lawyers.
In addition, most real estate transactions follow the “buyer beware” principle. In other words, it is usually the buyer’s responsibility to inspect the property and look for defects or substandard elements.
When it comes time to sign the contract, a party can also take the following steps to protect themselves:
Many purchase dispute agreements can be resolved through a home inspection. Boundaries, pricing, and other measurable aspects of the property can often be resolved this way. Legal action may be required to clarify or resolve other disputes.
Legal action may sometimes be necessary to complete a sale, which can sometimes delay the sales process.
If the title is disputed, there may be a need for a quiet title hearing.
Last but not least, a lawsuit can be filed if the agreement is breached (for instance, if the seller sold the property to another buyer after promising to sell it to the plaintiff).
Purchase agreements can often be complicated and may require the assistance of a commercial lawyer. You may want to hire a lawyer if you need assistance with a purchase agreement document. The document can be drafted and reviewed by your attorney for accuracy.
Additionally, your lawyer can assist with negotiations and other processes. Your lawyer can guide you through the litigation process to protect your interests if you need to file a lawsuit.