Purchase Agreement Form

A purchase agreement form is a document between a seller and a buyer outlining a transaction. It details what is being sold, the price per unit if there is more than one item, and the amount due. It will also explain the terms and conditions of the sale.

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What is a Purchase Agreement? Template for Real Estate Purchase Agreement Real Estate Purchase Agreement Sales Contract Rental Agreement vs. Purchase Agreement

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What is a Purchase Agreement?

A purchase agreement is a legal document detailing the specifics of a transaction. This transaction could be for a variety of goods and services, including real estate. This legal document should outline the specific terms and conditions for the transaction. This will ensure both the buyer and the seller know the exact agreements before the purchase agreement is finalized.

This type of agreement may be legally binding, so it is important to look over the specific terms and conditions before signing anything. Failing to meet these terms and conditions can render the purchase agreement null and void. This could lead to legal disputes between the buyer and seller, so it is important to fully understand the agreement beforehand.

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Template for Real Estate Purchase Agreement

There are various templates and forms that allow parties to create their own real estate purchase agreements, but parties should consider consulting a real estate law firm/attorney for legal advice or an experienced real estate agent.

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Real Estate Purchase Agreement

A real estate purchase agreement is a legal, binding contract between a home buyer and seller that details the conditions of a home sale/residential property sale. The agreement does not transfer the title of a home; it does not represent a transfer of ownership. Rather, the sale agreement stipulates the rights and responsibilities of each party before the legal transfer of title can take place. A real estate purchase agreement is also known as a real estate purchase contract, real estate sales contract, home purchase agreement, or house purchase agreement.

The buyer proposes the conditions in the real estate purchase agreement, including the buyer's offer price. The seller will then agree with the offer, make a counter offer/negotiate, or reject the offer. Counter offers can include the following issues:

The buyer can accept the counter offer, make a second counter offer/negotiate (referred to as a counter-counter offer), or reject the counter offer. In most states, unlimited counter offers can be submitted between the buyer and the seller. If the parties reach an agreement on the purchase price and conditions, and both sign the real estate purchase agreement that has been customized to reflect the agreed-upon terms, they are deemed "under contract."

While real estate transactions vary, every real estate purchase agreement should include certain items. The following items should be included in the terms of this agreement:

Buyer and Seller Identification/Information: If there are multiple buyers, they should decide whether they will be joint tenants or tenants in common and include that information in the purchase agreement. Joint tenants have the right of survivorship; if one tenant dies, the property immediately passes to the other without going through probate. With tenancy in common, each tenant owns a share of the property; shares are not always equal and may be transferred to someone other than the other tenant.

After both parties agree in writing to the terms and conditions of the real estate purchase agreement, the next step could be a waiver -- a separate document that is signed when the buyer consents to remove a condition (or conditions) and move ahead with the sale. By signing the waiver, the prospective buyer gives up the right to make any claims in the future with regard to issues that may have been uncovered under the condition. The waiver clears the seller/lessor from potential liability.

Courts are divided on the issue of who bears the risk of loss -- the risk that the real estate will be damaged or destroyed between the time of execution of the real estate purchase agreement and transfer of legal title. The majority of states hold that the buyer bears the risk of loss because the doctrine of equitable conversion has given the buyer equitable title. A minority of states hold that the seller bears the risk of loss until legal title is transferred to the buyer. A third group of states hold that the risk of loss is borne by the buyer only if the buyer is in actual possession of the property or has received legal title.

Sales Contract

A real estate sales contract is another term for a real estate purchase agreement. A real estate purchase agreement is a legal, binding contract between a home buyer and seller that details the conditions of a home sale/residential property sale. The agreement does not transfer the title of a home; it does not represent a transfer of ownership. Rather, the sale agreement stipulates the rights and responsibilities of each party before the legal transfer of title can take place. A real estate purchase agreement is also known as a real estate purchase contract, real estate sales contract, home purchase agreement, or house purchase agreement.

Rental Agreement vs. Purchase Agreement

A rental agreement, also known as a lease, is an agreement between a lessor (owner/landlord) and a lessee (tenant) regarding the rental of residential rental (real) property. Residential rental property yields income for its owner from rental payments made by a tenant.

A rental agreement allows a tenant to rent a residential property in exchange for regular payments to a landlord; it details the rights and obligations of both a landlord and a tenant during the rental term, including fees and payments, property use, and maintenance. A rental agreement is a binding, legal document that serves to protect both the landlord and tenant.

Residential rental properties include:

A rental agreement is generally presented after a credit check has been completed and the property management has decided they will accept the applicant as their tenant. A rental agreement generally includes the following sections:

Deposit and fees: This section details the payments that must accompany the first month's rent. It also details the charges the tenant must pay for credit and background checks, as well as the fees for violating the terms of the rental agreement.

Limits of Occupancy: This section includes the number of tenants allowed to reside in the unit.

Maintenance: This section details the types of repairs in the unit that are the responsibility of the management, and which repairs the tenant must make.

Pets: Some buildings do not allow any pets. Some will allow pets under a particular size or weight. This section will explain those regulations and how to obtain approval for a pet

Rent: The amount of money to be paid at regular intervals by the tenant and when those payments are due, generally on the first day of the month.

Rules/Regulations: This section details miscellaneous policies for the building in question, including smoking, evening "quiet hours," and trash disposal.

Terms of tenancy: The length of time that a tenant may remain and continue making rent payments, generally month-to-month or one year. This section also describes how and when a landlord may give a notice to vacate, a written notice given by a landlord to a tenant in order to terminate their tenancy. A landlord notice to vacate can be given before the end of a fixed-term lease if the landlord does not intend to renew it, to terminate a month-to-month tenancy, or to remove a tenant who has not vacated the property after the rental agreement has expired.

Utilities: This section describes the utilities that are included in the rent and the ones the tenant must pay for.

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