Real Estate Purchase Agreement

What is a Real Estate Purchase Agreement

A real estate purchase agreement, also known as a purchase contract, is a legally binding document used when buying or selling property. It outlines essential terms such as the property details, purchase price, deposit, and closing date, and is typically drafted after a verbal agreement is reached but before closing. This agreement is crucial for ensuring both parties—whether individuals or entities—clearly understand their rights and responsibilities. It serves as legal proof of the transaction and helps prevent disputes by establishing the terms of the sale in writing.

Real Estate Purchase Agreement Sample

Every real estate purchase agreement should include certain fundamental elements, such as the names of the parties, a thorough description of the property, the purchase price, the deposit amount, and the closing date. It may also include other terms and conditions, such as financing arrangements, inspection contingencies, and what will happen in the event of a breach of the agreement.

• Parties: The full names of the buyer and seller
• Property description: A thorough description of the property, including its address and any fixtures or appliances that are included in the sale
• Purchase price: The agreed-upon purchase price
• Deposit: The amount of the deposit and when it is due
• Closing date: The date by which the transaction will be completed

Frequently Asked Questions