The Purchase Agreement is a contract both sides of a real estate purchase will see. In the first post in our documents series we’ll walk you through what each section looks like.
A. This is where the buyer’s name as they want it shown on the title will be.
B. This is where all of the property information will go. It will also include anything you want to include or exclude in the sale.
C. This is the purchase price in the original offer.
D. This section has the amount of earnest money and explains the legality of the different aspects of the earnest money.
E. This section explains the terms of the method of payment and the terms of the loan if the purchase is being financed.
F. In this section the time to obtain the final loan application will be decided if there is a loan involved.
G. The closing section determines the terms of closing, including the date, the distribution of fees, and whether or not the sale is contingent on another sale.
I. In this section the buyer can decide if and what kind of survey they would like.
J. This section is in regards to if the house is determined to be in a flood plain or not and what
K. The Homeowner’s Insurance section will determine the amount of time to get proof of home owners insurance on this home.
L. This section explains the real estate professionals are not experts when it comes to environmental contaminants and that the buyer should seek the advice of a professional.
M. This is where the buyer can choose if they would like an inspection and the terms of the inspection response are determined.
N. In this section the buyer will decide whether they want a home warranty and who will pay for it.
O. This section will note if the buyers have received the required disclosures.
P. The Title Section will determine all of the details of what kind of title will be ordered, where the title will be ordered from and the closing held, and the payment for the title.
Q. This section determines the details of how the taxes will be distributed.
S. This section explains the timing of responses for the contracts.
T. This section is applicable if the home being purchased is in a home owner’s association.
U. The Attorney’s Fees section addresses the fees if attorneys are involved.
V. Section V addresses any additional information that was not included in the rest of the contract.
W. This section will include any further requirements the buyer is requesting for the sale.
X. The Consult Your Advisors section advises you to seek the advice of professionals.
Y. In this section it will acknowledge if the transaction taking place is a limited agency.
Z. The final section is where the time frame of the offer is determined.