This paperwork can only be executed, and its terms placed in Effect through the Dated Signature of the Buyer, the Seller, and the Agent. Sometimes home buyers take possession of the home on the day of closing, and sometimes they agree to wait days or weeks after closing. The downloadable files on this page act as a tool to document a Real Estate Purchase where a Residential Property will have its ownership transferred to the Buyer upon his or her payment to the Seller of that property. At the closing, all documents, disclosures, and funds will be transferred to the respective parties. This is one of the most important contingencies in a real estate transaction. Earnest Money Receipt – Issued to the buyer after the escrow payment (if any) has been made. In a nut shell, a real estate purchase agreement will lay down the personal particulars of both parties, details of the property, terms of the sale and who should pay for what. 1. This will give the financial institution providing financing the comfort and security they need in the chance the buyer can no longer afford the mortgage payment. The Number of “Days From The Effective Date” the Buyer is allotted (to achieve this goal) will have to be recorded on the last blank space in this statement. In today’s day and age, email is generally an acceptable method of communication, but some people (say, older buyers or sellers) still prefer snail mail when receiving important documents, like the release of a home inspection contingency. The remainder of this document will focus on delivering a wealth of information regarding the terms of this agreement. In real estate, a purchase agreement is a binding contract between a buyer and seller that outlines the details of a home sale transaction. The undersigned hereby agrees to pay a brokerage fee of $_____ to _____, broker, in accordance with the existing listing contract. Another title for this important legal document includes the Agreement to Purchase Real Estate. PURCHASE AGREEMENT THIS IS A LEGALLY BINDING CONTRACT BETWEEN PURCHASER AND SELLER. Property Disclosure Statement – Required in every State, although, if the State is considered “Buyer Beware” the seller is not legally liable for the information provided. We shall accomplish this by marking one of three checkboxes (“Buyer,” “Seller,” and “Both Parties”) presented in the statement in this section. He is also a Realtor in Virginia. 2 – Introduce The Agreement, Seller, Buyer, And Concerned Property. Every home sale starts with a real estate purchase agreement—a contract signed by buyers and sellers with the purchase … If the buyer likes the home, an offer will be made. If there are additional Addendums, then supply the title of each one on a separate line and mark the checkbox corresponding to that line.    The second blank space in this section will require the last Calendar Date the Buyer may submit the Earnest Money to the Seller before violating this term. All rights reserved. The Parties,” shall deliver the opening statement to this agreement. First, we must define what type of property this is. Purchase Price And Terms”). Here are seven terms you are likely to come across in a real estate purchase agreement, and why you need to check these provisions carefully before you sign on the dotted line. Why it matters: Many home sellers will offer to pay for the first year of a buyer's home warranty to entice buyers to bite, especially if the appliances in the house are old and/or it's a buyer’s market. The agreement will usually contain a price along with conditions for the sale and the seller can choose to reject or accept. Article “III. VR FORM 600 Revised 07/19 Page 1 of 10 Reviewed 07/19 VIRGINIA REALTORS® RESIDENTIAL CONTRACT OF PURCHASE (This is a legally binding contract. If this Agreement is terminated through its own terms or absenteeism then record the Number of Days from the Termination Date where Earnest Money, submitted by the Buyer, must be returned to the Buyer.  The State where the Residential Property is located, and this Agreement shall be enforced should be produced on the blank space in section “XXIV. Why it matters: When choosing a settlement date, make sure you’re giving yourself ample time to fulfill the home inspection, appraisal, and any other contingencies. An inspection contingency (also called a “due diligence … realestate.utah.gov. DOCUMENTS FOR CLOSING: Seller’s attorney shall pr epare deed, note, mortgage, Seller’s af fidavit, any cor- ... residential real estate is required to provide the buyer with any information on … Basic coverage starts at about $300 and goes up to $600 for more comprehensive plans. The Buyer must receive such a Notice within the number of days reported here after the Buyer’s failure to provide a written reference on the due date in Item C. If the Seller is providing the Financing the Buyer requires to purchase this Reale Estate, then mark the checkbox labeled “Seller Financing.” Here several items will need to be supplied with information. In other words, a pre-qualification letter certifies the buyer is able to afford the property. The goal is to protect both the buyer and seller, and to ensure that all expectations are clear. Contingencies can also include a home appraisal, home inspection and mortgage approval. If the Buyer must obtain Financing to purchase the concerned Residential Property, then mark the checkbox labeled “Bank Financing.” This selection will require you indicate the type of Financing the Buyer must obtain by marking the checkbox corresponding to the list item “Conventional Loan,” “FHA Loan (Attach Required Addendums),” “VA Loan (Attach Required Addendum),” or “Other.” If “Other” has been selected, then define the Financing Option the Buyer is obtaining on the blank line provided. How do I write a Real Estate Purchase Agreement? Mark the “Lead-Based Paint Disclosure Form” checkbox if a Lead-Paint Disclosure will be attached. Why? Therefore, the buyer is purchasing the property on an “as-is” basis. Record the Due Date the Seller has named when he or she must receive a Letter verifying the Buyer’s Credit and ability to obtain Financing are both solid in the space provided. Property Condition,” we must define the last Calendar Date when the Buyer may consign Professional to inspect the premises.  Report the Calendar Date and Time when all such Buyer-Generated Inspections must be complete and no more will be allowed to the blank lines supplied to the paragraph beginning with “Therefore, Buyer Shall Hold The Right…” Next, document the Calendar Date and Time of Day when Buyer must have presented all Property Inspection Reports containing issues the Seller must correct before the Closing may be completed to the blank spaces in the paragraph statement starting with the words “After All Inspections Are Completed…” Finally, this area will call for the Number of “Business Days” after such a Report is received by the Seller that will allow an agreement to rectify any issues the Buyer has that have been produced by the Inspection Report. If there are any “Additional Terms And Conditions” that will be applied to the Purchase Agreement defined in this paperwork but has not been documented within its contents, then, supply this information to the blank lines in the thirty-second article (“XXXII. The seller, or their agent, will be contacted where the parties will meet at a specific time at the residence. Yes, a written and signed purchase agreement is a legally binding document, which is why canceling the deal can be so complicated. The buyer will propose the conditions of the contract, including their offer price, which the seller will then either agree to, reject or negotiate. This real estate contract is usually used in a … According to standard real estate contract law, here are some of the penalties you may face. Beforehand, make sure that an accurate recording of this paperwork’s the Effective Date, the Identity of both Buyer and Seller, as well as document the Property’s Description have all been supplied. The next area of this article shall supply a blank space labeled “Street Address.” Furnish the exact physical location of the concerned Residential Property to this line. A list of checkbox items has been included for this purpose. For the best experience, please enable cookies when using our site. A disclosure is a statement or attachment to a purchase agreement that reveals information about the property. This contingency will need to be defined in “VI. Make sure to enter the Full Name of the Property Owner on the blank space labeled “Seller.” Here too we will need to supply some additional information. Real Estate Purchase Agreement (completed construction) is used where: 1. the Buyer is purchasing a new home that has been completed before the Buyer takes possession or the Contract closes; or 2. the Buyer is purchasing a previously occupied home. Lead-Base Paint Disclosure Form – A Federal requirement for any residence that was built prior to 1978. This includes the specifics of the property, the purchase price, the downpayment, the payment terms and other terms and contingencies that the parties agree on. Pay attention to ceiling details and anything that may show past flooding, leaks, or any repair that is needed. Legal Description,” we will focus on the Residential Property that will be sold to the Buyer. The caveat: If you back out of the transaction for any reason or contingency outlined in the purchase agreement, you get your earnest money back (more on contingencies next). A contingency is a condition that must be met or else the terms of the entire agreement may not be valid. What it is: In a nutshell, a home warranty is a policy that covers the cost of repairing many of a home’s appliances if they break down. This real estate purchase contract is subject to the final inspection and approval of the Buyer in writing on or before _____. Why it matters: Your buyer’s agent must abide by the terms of the delivery when communicating with the listing agent or seller. If more room is required, then you may continue on a titled attachment that is named in “Article XXXI Disclosure.”, 7 – This Agreement Can Only Be Executed Through The Party Signatures. Signature.” Only the Seller of the property, the Buyer of the property, and the Agent handling their transaction may satisfy this section. Create a high quality document online now! Offer Expiration,” then utilize the blank lines presented here to name the final Calendar Date and Time when this agreement must be signed or be considered void. Produce the “Loan Amount” to Item “A,” the “Down Payment” the Buyer must submit to Item “B,” the Yearly “Interest Rate” the Seller will apply to Item “C,” The Number of “Months” or “Years” this Financing is expected to run to Item “D,” and the Calendar Date when the Buyer must supply proof of his or her ability to Pay to the first two blank lines in Item “E” and the last Calendar Date the Seller may approve of this proof to the last two blank spaces in Item “E.”, 4 – Record Any Property The Buyer Must Sell To Complete This Purchase. You may mark the checkbox labeled “Single-Family Home,” “Condominium,” “Planned Unit Development (PUD),” “Duplex,” “Triplex,” “Fourplex,” or “Other.” Keep in mind that if you mark the “Other” box as a description of this property, you must supply the definition to the blank line attached to this choice. What it is: The possession date is the day when buyers can move into their new home. A listing agent agreement, also known as a listing agent contract, is a legally binding document between a seller and the real estate agent representing them in the sale of their home. 9. In “XIII. Personal Property” will enable the two parties to define any Personal Property (i.e. Once an idea of what the buyer is looking for is discovered, the search can be narrowed. A residential real estate purchase agreement is a binding contract between a seller and buyer for the ownership transfer of real property. If the Seller has not signed this paperwork by the Calendar Date reported here, all Earnest Money given must be returned to the Buyer and these terms will be considered revoked by the Seller.  In many cases, Disclosures will have to be made. Real Estate Assignment Contract. AGREEMENT TO SELL REAL ESTATE ... 13. Several checkbox statements have been supplied to Article “XXXI. It looks like Cookies are disabled in your browser. If an agreement is made, the seller will be required to complete and put forth disclosure forms to the buyer. Property Disclosure Statement – Filled-in by the seller to inform the buyer of the current status all parts of the home such as the roof (leaks), flooding, electrical, plumbing, heat, etc. The most common contingency is for the buyer to obtain financing from a local financial institution. Transfer Taxes – If there is a real estate transfer tax, this is usually paid at the time of recording the deed. Due to the paint particles being hazardous to a person’s health, this is a required disclosure to be attached to any purchase agreement. However, if you decide not to buy the house for any what-if that is not included in the agreement, the seller can keep the earnest money. 5 – Discuss Factors Relevant To The Closing Of This Purchase. No matter what the seller tells you, get the residence inspected by a certified inspector in your area. Item “D” will continue this subject by requiring a definition to the number of days the Seller from the above Reference Letter’s Due Date to terminate this agreement by issuing a Notice in writing.