The process of buying and selling a piece of property isn’t as easy as you may think! These real estate transactions tend to involve large sums of money and will require proper legal protections for both parties to avoid an improper deal. This is where the purchase and sales agreement comes in.
A legally-binding contract between the buyer and seller, the purchase and sales agreement outlines the conditions that must be met to complete the sale. This document is critical to the process of buying and selling real estate. Benefitting both the buyer and the seller, the purchase and sales agreement thoroughly describes what is to be expected to avoid negative discoveries between the initial offer and the eventual closing day.
Here’s how to better understand your Nashville real estate purchase and sales agreement:
- Understand Basic Buyer and Seller Information
- Buy and Sell Intentions
- Property Description
- Financial Overview
- Homeowner Responsibilities
Understand basic buyer and seller information
the purchase and sales agreement is a legally binding contract. Therefore, it’s important to include specifics relating to the people involved in the transaction. As this agreement is between two specific people, every element will need to be clearly defined.
This verification process will include identifying the full names of participants in the transaction, their addresses, phone numbers, and so on. It will also include the information for any co-signers. Other basics such as the date of the initial agreement and the closing date will also be included, as will any deposits that have already been paid. Outstanding portions of the contract must also be addressed.
Buy and Sell intentions
a long with basic contact info, your purchase and sale agreement contract must clearly state the nature and intentions of the transaction. It must be clearly stated that transfer of ownership is to commence upon completion of all stated prerequisites. The related rights of the buyer and seller will also be outlined in this section.
As this contract will act in the best interest of everyone involved in the transaction, any provisions to the sale must be included to ensure all information related to possible encumbrances are known before closing.
With the help of a real estate attorney, your purchase and sales agreement will go smoothly, without any extra issues. The attorney will ensure that a thorough description of the property is included in your agreement. The agreement should also address any problems with the property that are known at the time of writing the contract. It is important to make sure the buyer has recourse if he or she is not informed of major problems with the property that are found immediately after the sale.
A thorough property description can also allow the buyer to perform his or her own inspections to ensure the state of the property is as outlined by the seller. A clause might also be included that allows the buyer to terminate the contract if it is found to be unsatisfactory at the end of the process.
When it comes to your real estate transaction, there can often be complicated financing strategies because of the large amounts of money involved. This section of the purchase and sales agreement will work to outline the various specifics involved with the financial strategy.
Your financial overview can include the amount of money to be placed as a down payment, the amount to be financed, interest rate, escrow, sales tax, and any other financial considerations to be made relating to the sale. Terms will be outlined for the termination of the contract should proper financing not be procured in time.
When selling a piece of property, there are certain responsibilities that fall onto the original homeowner. The seller must maintain the property up until the transfer of the deed. This section of your agreement should outline the extent of these responsibilities.This can include paying the property tax until the closing date, keeping the property from falling into disrepair, and insuring the property throughout the sales process. Any necessary repairs will also be outlined in this section of the purchase and sales agreement.
Pro Tip: In your purchase and sales agreement, addendums can be added if, for instance, more time is needed to complete certain aspects of the contract such as repairs. Anything that affects the originally agreed upon terms of the purchase and sales agreement can be added once both parties agree to the updates.
Contact Rochford Law & Real estate title
Hiring an experienced real estate attorney like Rochford Law & Real Estate Title in Nashville, TN can save you time and money in the long run. It’s best to cover all your bases and get through a real estate transaction with as little problems as possible. However, it’s comforting to know that should a dispute pop up, a real estate litigation attorney can help find a resolution.