For Sale By Owner Real Estate Purchase Agreement
When you are selling your home without the help of a real estate agent, you need to make sure you have a solid purchase agreement in place. This document outlines the terms of the sale and protects both the buyer and seller. Here's what you need to know about a for sale by owner real estate purchase agreement.
What is a For Sale By Owner Real Estate Purchase Agreement?
A for sale by owner real estate purchase agreement is a legal document that outlines the terms of a real estate sale between a seller and a buyer. This document is typically drafted by the seller, but it is important to have an attorney review it before it is signed. The purchase agreement should include details about the property, the purchase price, and any contingencies that need to be met before the sale can be completed.
Why Do You Need a Real Estate Purchase Agreement?
Without a purchase agreement, there is no legal record of the terms of the sale. This means that either party could back out of the sale at any time without any consequences. A purchase agreement protects both the buyer and seller by clearly outlining the terms of the sale and ensuring that everyone is on the same page.
What Should Be Included in a Real Estate Purchase Agreement?
A real estate purchase agreement should include the following information:
- Details about the property being sold, including the address and legal description
- The purchase price
- The amount of the deposit and when it is due
- The closing date
- Any contingencies that need to be met before the sale can be completed
- Details about who will pay for closing costs
- Any warranties or guarantees that are being made about the property
- Details about what happens if either party breaches the contract
What Contingencies Can Be Included in a Real Estate Purchase Agreement?
Contingencies are conditions that need to be met before the sale can be completed. Some common contingencies that can be included in a real estate purchase agreement include:
- Financing contingency: This states that the sale is contingent on the buyer securing financing for the purchase.
- Home inspection contingency: This states that the sale is contingent on the home passing a home inspection.
- Appraisal contingency: This states that the sale is contingent on the home appraising for at least the purchase price.
- Contingency for the sale of another property: This states that the sale is contingent on the buyer selling their current home.
What Happens After the Real Estate Purchase Agreement is Signed?
Once the real estate purchase agreement is signed, both parties are legally bound to the terms of the sale. The buyer will typically have a certain amount of time to complete any contingencies that were included in the contract. Once all contingencies have been met, the sale can proceed to closing. At closing, the buyer will pay the remaining purchase price and the seller will transfer ownership of the property to the buyer.
Conclusion
A for sale by owner real estate purchase agreement is an essential document for anyone selling their home without the help of a real estate agent. This document protects both the buyer and seller by clearly outlining the terms of the sale and ensuring that everyone is on the same page. Make sure you have an attorney review your purchase agreement before you sign it to ensure that it is legally binding and protects your interests.