Purchase Agreement Understanding
As a homeowner, when you are trying to sell your home without any intervention of a real estate agent. You require writing a contract regarding the sale of the property. It is important to understand Purchase Agreement.
Commonly known as “For Sale by Owner” or FSBO contract,. This type of deal outlines the terms and conditions of the transaction in detail. Along with the obligations and rights of the buyer as well as the seller.
Here’s a little help on how to write it –
State all the basic information
Name of each party: You should state the full name of both buyer(s) and seller(s) along with their marital status.
Give a title: To make the purpose of the contract clear, you need to give a claim to the deal placed at the very beginning of it.
Give a date: To protect both the parties, it is essential that you date the contract.
Provide a full description of the real estate: In the contract, make sure to state the common residential address as well as the complete legal description of the property.
Supply the detail if any personal property is included in the sale: Name and describe every item of your “personal property” in the body of the contract.
Space for signature: There should be a place at the end of the contract for the signature of the buyer and the seller.
Set forth the payment terms
Write the total buying price: Each ” For Sale by Owner” contract must include the full final sales price.
State the process of payment: There should be a full description of how the buyer will pay the total buying price.
Description of how the parties will pay property taxes: State which installment will be paid by which party.
Disclose essential information to the buyer
Description of restrictions on the property: Say if there are any homeowner’s association restrictions on the property.
Provide property disclosure: Give the buyer all the needed disclosures.
Advise the parties regarding closing procedures
State closing costs: As agreed between the parties, allocate closing costs.
Write the date of possession: Include the date on which the buyer can take possession of the property.
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