As a buyer or seller, the most important document you`ll encounter in a real estate transaction is the purchase and sale agreement. An effective purchase and sale agreement protects both parties and ensures a smooth, stress-free closing.
Here are some tips to help you make a purchase and sale agreement.
1. Define the terms
Make sure both parties agree on the specifics of the transaction, such as the purchase price, earnest money deposit, closing date, and any contingencies. It`s also important to include a clear description of the property and any personal property that will be included in the sale.
2. Include contingencies
Contingencies protect the buyer and seller in case of unexpected events such as financing falling through, issues found during a home inspection, or title defects. Make sure to clearly define the contingencies and the timeframe for resolving them.
3. Consider financing
If the buyer is getting a loan to purchase the property, include language that specifies if the sale is contingent on the buyer obtaining financing. If the seller is offering financing, clearly define the terms of the loan.
4. Address repairs
If the home inspection reveals issues that need to be addressed, include language that specifies who is responsible for making the repairs and by what deadline.
5. Review with an attorney
A purchase and sale agreement is a legal document, and it`s important to have a licensed attorney review the agreement before signing. An attorney can ensure the agreement protects your interests and complies with state and local laws.
In conclusion, a well-crafted purchase and sale agreement is essential for a successful real estate transaction. By clearly defining the terms, including contingencies, addressing repairs, and reviewing with an attorney, you can protect yourself and ensure a smooth closing.