In real estate business, the purchase agreement is a critical document, but sadly, most people do not handle it with the seriousness it deserves. In fact, few people are aware that 99% of all the people you will be offering a sale to are not professionals in real estate matters. This has caused many to miss out the best opportunities. With that in mind there are a few essentials for any real estate purchase agreement and they include,
Simple Wording – When coming up with the real estate purchase agreement you should make it simple and short. Most sellers fear and are put off by complicated language because they do not understand it.
Important Clauses Possession – The possession clause talks about the property and its occupancy and here, garage door openers, keys to the house will be given to the buyer of the house when the title transfer is complete. This is, unless there is an occupant in the house but if it is vacant, the keys and possession will be transferred to the buyer once the contract is executed. Security deposits, advances rents and leases will come with the title.
Defects Here, the seller should put in writing the fact that their home does not entail any hazardous substances. Additionally, there should be no violations of health, building, zoning, environmental, ordinances or codes by the seller. The latter should also include the fact that there are no facts that could affect the value of the property.
Prorations – The proration of property rents and taxes should be based on the tax of the current year without the seller in including discounts or any other exemptions.
Right to Assign – The buyer can assign the contract and in such cases all responsibilities, privileges and rights under the contract will no longer be a problem to the buyer because they will be already assigned.
Laura Hubbard with Wealth Stake adds, “No Judgments Here, the seller is categorical that the equity of the property is not threatened by judgments, bankruptcy or contemplated bankruptcy by a title holder.”
Recourse against Buyer – In case of a default, the seller can redeem the situation by retaining the earnest money of the buyer.
Closing Date – In case there is need for the buyer to take additional actions, documentation or paper work to the lender who will say that the delay was not occasioned by the buyer.
Inspections and As Is – The contract is based on the approval and inspection of the subject property before the transfer of the title. In this case, the seller will give the buyer or their representatives access to their property before the transfer of the title. The inspection is done with utilities and power on. Once the buyer or their representatives are satisfied, they will convey an “AS IS” condition. If they are not satisfied they will let the seller know, then write to the seller within ten days from the date of the contract.