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What details should be in a residential purchase agreement?

On Behalf of | May 30, 2023 | Real Estate Law

Buying or selling a new home is a serious matter, considering the amount needed to complete the purchase and the various procedures related to financing it. A buyer or seller could encounter countless documents and forms necessary for the transaction.

A purchase agreement is a vital document involved in the process. This binding contract sets terms and arrangements between the buyer and the property’s seller. This document concerns essential aspects of the property, including its specifications, usage and payment terms.

Both sellers and buyers might review the purchase agreement while negotiating, so errors could be easy to miss. Every time they receive this document, they should check for these standard details that should be in a residential purchase agreement:

  • Identification of the buyer
  • Date and place when the buyer signed the deposit receipt
  • Property’s description and specifications
  • Purchase price of the property
  • Agency disclosure
  • Financial terms and agreements
  • Disclosure of potentially competing sellers and buyers
  • Disclosure of the agency’s role in the transaction
  • Date indicating close of escrow

Once the buyer and seller finalize the offer and its terms, they sign it as a binding contract to confirm the sale.

Other things to consider before signing a purchase agreement

As a buyer or seller, you should verify this information before signing any contracts. Aside from reviewing basic information relevant to the sale, it is crucial to read the contract’s terms, conditions, clauses and fine print. Knowing these details could help clarify your rights and obligations before signing the contract.

Additionally, remember that a residential purchase agreement’s content could vary based on the property and situation. If you feel confused as a buyer or seller, feel free to seek professional advice to help you fully understand it.