Whenever you buy or sell property, you'll need a document that outlines the rights and responsibilities of the interested parties. Without it, there is no way to prove the terms of the sale or the rightful purchaser.
The process of buying and selling real property is considerably more complex than exchanging goods and services. If you haven't purchased property before, it's difficult to understand all the complexities. A properly-composed Real Estate Purchase Agreement is the best way to make sure you're not skipping over important details.
What Is a Real Estate Purchase Agreement?
A Real Estate Purchase Agreement is a legally-binding document that explains the terms of a real estate purchase. Typically, buyers and sellers go through a negotiation process to establish the terms of the sale. However, they are only considered under contract after a Real Estate Purchase Agreement is signed.
It's important to note that a Real Estate Purchase Agreement does not actually transfer the title of a property. Instead, the agreement only spells out the interested parties' rights and responsibilities in connection to the purchase.
Other Names for Real Estate Purchase Agreement
Depending on your state, jurisdiction, or context, a Real Estate Purchase Agreement may also be known as:
If you're confused, don't worry. By using the attorney-vetted forms on 360 Legal Forms, you automatically get the document that complies with the laws in your jurisdiction.
Real Estate Purchase Agreement Terms
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Earnest Money: The seller's deposit indicating intent to buy the home
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Legal Description: A written record explaining the location of the property and its boundaries or enough information for a surveyor to determine its boundaries
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Assumption: When a buyer takes over the seller's mortgage, transferring the home loan to their name
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Default: When the terms of the agreement are not met and lead to its termination
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Escrow: When a neutral third party holds the title to a property until all terms of a contract are fulfilled
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Contingency: Any specific condition that must be met for the purchase to be concluded
Who Needs a Real Estate Purchase Agreement
Anyone who buys or sells any type of residential property may use a Real Estate Purchase Agreement. However, the home must have been previously owned, or construction of a new home must be finished, before the agreement's closing date.
If you want to sell a property, you'll need a Real Estate Purchase Agreement. Although it may seem like a straightforward transaction, purchasing residential property includes many decisions about the conditions of the sale that should be documented.
Any conditions of the sale, as well as the buyer and seller's rights and responsibilities, should be in the agreement. Things such as financing arrangements or other terms may be jeopardized without a contractual obligation from both parties.
Why Use 360 Legal Forms for Your Real Estate Purchase Agreement
Customized for you, by you
Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Real Estate Purchase Agreement.
Right for your state
Each document on 360 Legal Forms is customized for your state.
Fast and easy
All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.
How to Create a Real Estate Purchase Agreement with 360 Legal Forms
To be valid, a Real Estate Purchase Agreement must have certain elements clearly established. With 360 Legal Forms, you get access to attorney-vetted legal forms that give you peace of mind.
The process is fast and easy. Our proprietary form generator can help you create your customized Real Estate Purchase Agreement in a few short minutes. We'll ask a handful of simple questions. Just fill in the requested information, and we'll put it together. You can see your document being created as you go.
Once completed, simply download your form as a PDF or Word document from your secure online account.
What Information Will I Need to Create My Real Estate Purchase Agreement?
To create your document, please provide:
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Closing Date: Date when the purchase will be finalized
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Personal Information of the Buyer: Name and address of the person purchasing property
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Personal Information of the Seller: Name and address of the person selling property
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Price and Financing: The cash amount of the sale and the financing terms
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Escrow Terms: Name and address of the person who will hold the money in escrow, if applicable
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Property: The address and legal description of the property being sold
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Title Insurance: Who will pay the title insurance
Real Estate Purchase Agreement Signing Requirements
A Real Estate Purchase Agreement isn't valid without a signature from both the buyer and the seller. If the residential property is jointly owned, all owners must sign the agreement.
What to Do with Your Real Estate Purchase Agreement
After creating and signing your Real Estate Purchase Agreement with 360 Legal Forms, you can download and print as many copies as you like. A Real Estate Purchase Agreement represents a contract between two independent parties. As such, it doesn't need to be filed with the Recorder's Office, nor does it need to be notarized. The buyer and seller should both retain signed copies for their personal records.
