Matching the perfect buyer with the perfect home is an exciting time, but before you can hand over the keys, a real estate contract called a purchase agreement has to be signed. A purchase agreement will clearly outline the terms of the agreement between the buyer and seller.
Continue to read this step-by-step article on how to draft a real estate purchase agreement.
Drafting a Real Estate Purchase Agreement
Believe it or not, learning how to write up a purchase agreement is a valuable skill in the event of a real estate transaction. A real estate purchase agreement indicates the sale of the property and highlights the purchase clauses made between the seller and buyer. Every payment term, date, and detail regarding the purchase should be included, making your document as thorough and complete as possible.
How to Draft a Real Estate Purchase Agreement
When drafting a real estate purchase agreement, you will want to carefully outline the terms of the sale so both the buyer and seller understand what they are agreeing to. Below are the simple steps to drafting your house purchase agreement.
- Identify the address of the property being purchased, as well as all legal descriptions.
- Identify the names and addresses of the buyer and seller.
- Detail the price of the property and the terms of the purchase.
- Set a closing date and closing costs.
- Detail taxes and related costs, and establish which party is paying the costs.
- Include additional items being sold with the property.
- Include required disclosures to issues with the property.
- Detail contingencies on the sale.
Purchase agreements have these elements already incorporated in them as a template. You should reach out to a trusted lawyer to confirm nothing else is needed, just to be sure.
What Should Be in a Purchase Agreement Template
If you are considering drafting your purchase agreement and are searching for a template online, it is important to understand what a simple real estate purchase agreement should include. Below are the components of a purchase agreement:
- Basic Identifying Info. This should include all names of parties involved in the agreement, as well as relevant signature blocks and the address of the real estate being sold.
- Payment Terms. This should include all obligations of the parties involved, as well as the total cost of the sale. You will also want to include the amount of earnest money deposit involved in your sale.
- Dates and Times. This should include the closing date, and the date of execution included in your real estate agreement.
This call all be drafted by you, or you can use a free printable real estate purchase agreement template online. Generally, it is recommended to source the purchase agreement template from a reliable source—think legal resource or government agency. Brokers and agents will also have resources for agreements and templates that can be trusted.
Interested in learning more about real estate purchase agreements? From what you should add yourself to what you should expect to be added to a purchase agreement, this article has you covered for a more basic understanding of real estate purchase agreements.
