Sellers have to go through many stages to get their property sold, but the most sensitive part may just be the real estate purchase and sale agreement. Signing this contract is one of the last steps, so you need to pay close attention to the buyer’s requests and work closely with your agent to get the best possible outcome.
With the above in mind, you need to understand how a real estate purchase and sale agreement works as this can help you save money while keeping the buyer happy.
Below, we’ll go over the definition of a real estate purchase agreement and highlight the conditions that should be included in this contract. We’ll also tell you who needs a purchase and sale contract and share some of the common terms you’ll find in this type of agreement.
What is a Purchase And Sale Agreement in Real Estate?
First, let’s start by defining a sale and purchase agreement for a house.
Simply put, a sale and purchase agreement is a binding contract that dictates the terms and conditions of the sale of a real estate property. Besides detailing the specific purchase price and deposit amount, purchase agreements include basic information. This includes the property condition, closing arrangements, requests that the buyer makes, and the conditions that the seller agrees to.
Who Needs a Sale And Purchase Agreement In Real Estate?
A purchase agreement is a binding document that’s required every time a piece of real estate property is sold. It doesn’t matter if you’re selling or buying, you’ll need to set up an agreement with the other party to ensure that the sale of the property occurs while following certain pre-set conditions.
There are two different paths you can go when selling your home, which are working with an agent and managing your property sale independently.
When Represented by a Real Estate Agent
If you’re working with a real estate agent you don’t have to worry about the agreement. Your real estate agent is usually responsible for creating the draft and arranging a signing date with the buyer. Since agents don’t have the ability to give legal advice, the contract is usually drafted by one of the firm’s lawyers and then transferred to the real estate representative.
When Selling Independently
Sellers who work independently are directly responsible for drafting the contract and setting a signing date. As a part of this, you need to ensure that your contract meets all legal requirements and that it’s valid to local, stage, and national authorities. At the same time, you’ll also be responsible for negotiating all terms and conditions that the buyer may want to include or remove.