In real estate, a purchase agreement is a signed contract between the selling and buying parties that outlines essential information and considerations of a real estate transaction, such as the complete information of the property, the agreed price and terms, as well as the mortgage details upon purchase.
Basically, it’s the guide that dictates where the transaction is heading. Should the deal go wrong, failed payments and such, either party can refer to the purchase agreement for legal claims. A purchase agreement can be absolute or conditional. Absolute agreements are close to a receipt in comparison to a conditional agreement.
The Details That Make a Purchase Agreement
Any purchase agreement should not lack the information listed below.
- Complete legal names of the buyer and seller, be it an individual, group, or a company. Because this is a legal document, legal names are required for two parties to enter this agreement.
- Contact details of both parties should be indicated in the agreement such as address and contact number.
- Terms of payment and minimum monthly due. Part of this includes any grace period for delinquent payments.
- Full details of the estate being sold; size, coverage, materials, etc.
- Date of effectivity of the agreement and the conditions that could result to the nullity of the agreement.
- Any condition that needs to be met for any revision of the agreement or litigation of the property.