The purchase agreement contract is perhaps the single most important document in any real estate transaction. It is the legally-binding contract between buyer and seller that outlines the provisions, terms, and conditions for the sale and transfer of property.
To be valid, every purchase agreement contract must meet five requirements:
- It must be in writing
- It must contain an offer and an acceptance
- It must be signed by the parties to the agreement
- It must be legal (not violate any laws)
- There must be an exchange of things of value (typically it’s money in exchange for property)
To ensure that your transaction is legal, valid, and appropriate for your particular situation and needs, it’s important to retain an experienced real estate attorney such as the Law Office of David Rocheford. In many states, the initial offer is in the form of a contract. If the seller accepts, that converts the offer into a binding agreement. If rejected, the seller can counter the offer. Both parties can counter as many times as they like until they sign a mutual agreement or one party loses interest and simply stops responding.
A purchase agreement contract can vary from location to location, depending on the state – most real estate agents use a form that has been approved by a state Realtors® Association.
Once an agreement is reached, there are three important stipulations regarding the contract:
All fixtures to be transferred should be listed
The purchase agreement should list all items that are to convey with the property. “Fixtures” are any items such as appliances, equipment, or other items that are attached to or associated with the property.
Verify zoning ordinances
The purchase agreement may contain various stipulations. One should be the right to cancel the contract if zoning regulations prohibit the use of the property as planned. The buyer should be able to withdraw from the contract if they discover that zoning prohibits the intended use of the land or buildings included in the purchase.
All owners must sign the purchase agreement
In most cases, the purchase agreement contract should be signed by the legal owner of the property. If there is more than one owner, each owner should sign the agreement. In many states, both parties in a married couple have an interest in a property even if the title is held in one party’s name alone, so both should sign.
Buying and selling property, especially a home, can be very stressful. Be sure you have an experienced real estate lawyer such as the Law Office of David Rocheford who knows how to properly manage a purchase agreement contract so your transaction can be as worry-free as possible
Contact us below regarding all any purchase agreement contract questions.