Your Property: Understanding the Purchase and Sales Agreement Process
- Posted on November 4, 2021
- In Nashville Real Estate, Real Estate Attorney, Real Estate Lawyers
When it comes to your real estate transaction, understanding a standard purchase and sale agreement will be important. Property purchases and sales aren't as straightforward as you might think. The nature of these real estate transactions usually involves large sums of money and will require adequate legal protections for both parties to avoid any misunderstandings. A standard purchase and sale agreement provides such protections.
A legally-binding agreement between buyer and seller, such as the purchase and sales agreement, sets out the conditions the buyer and seller must meet before a sale can be completed. Such agreements are critical to the buying and selling of a piece of real estate. In order to avoid negative surprises between the time of the initial offer and closing, the purchase and sales agreement thoroughly explains what is expected to avoid misunderstandings between both parties.
Here’s what you need to know about purchase and sales agreements:
- Buyer Versus Seller
- Purchase Intentions
- Financing Strategies
- Contact Rochford Law & Real Estate Title
Buyer Versus Seller
Purchase and sale agreements are legally binding contracts. Because of this, it's crucial to include details about the people involved. Each element of this agreement needs to be clearly defined. The verification process will identify the full names, addresses, and phone numbers of all the participants in the transaction. Any co-signers will also need to be included.
A purchase and sale agreement should also include other basics such as:
- The date of the initial agreement
- The intended closing date
- Specification of any deposits that have already been paid
- Outstanding portions of the contract that still need to be addressed
As well as providing basic contact information, a purchase and sale agreement contract must clearly state the nature and intentions of the transaction. A purchase intentions clause can ensure that the buyer and seller are both protected long term. All prerequisites must be met before the transfer of ownership can begin.
In this section, the rights of the buyer and seller will also be discussed. Since this contract is for the ultimate benefit of all parties involved in the transaction, any provisions related to the sale must be included to ensure all encumbrance information is available before the closing date. This can ensure that the transaction process goes smoothly.
Looking for help with your Nashville real estate purchase and sales agreement? Contact Us Today!
Real estate transactions can involve complex financing strategies due to the large amounts of money involved. With that in mind, as a buyer or a seller, you’ll want to keep your best interest at heart, and protect your assets. Throughout this section of the purchase and sales agreement, the financial strategy will be outlined in detail.
A financial overview can include down payment amounts, financing amounts, interest rates, escrow, sales tax, and anything else related to the sale that must be considered. If proper financing cannot be procured in time, terms for termination of the contract will be outlined.
Addendums can be added to your contract if, for instance, it is necessary to extend the time to complete certain aspects, such as repairs. All changes that affect the original terms of the purchase and sales agreement can be added once both parties agree to the changes.
Contact Rochford Law & Real Estate Title
The buying of a property is a major financial investment, and the closing process is one of the most critical aspects of the entire transaction. At the end of the closing, the property legally becomes yours and buyers will usually walk away with a brand-new set of keys.
Because buying a residential or commercial space costs a lot of money, a complex network of legal documents are put in place and should be reviewed by a closing attorney to protect yourself from flaws that could disrupt the purchase or turn into a bad deal.
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.
Contact Rochford Law & Real Estate Title today!