- A real estate purchase agreement is a binding, bilateral agreement between two or more parties with legal capacity for the purchase, exchange or other conveyance of real property.
- 5 must-haves to include in your purchase agreement are the names of all parties involved, property details, pricing specifics, contingencies, and important dates.
- Be sure to keep the verbiage of your contract as clear and concise as possible in order to avoid a fall through.
Are you a new investor who gets confused by the legal mumbo jumbo that is sprinkled throughout different real estate contracts? Have you ever found yourself asking, “what does this real estate purchase agreement even mean?” If yes, you are not alone!
With so many real estate contracts investors have to deal with – from assignment contracts to deeds of trust, to power of attorneys – it can be difficult to keep it all straight. However, the most common (and arguably most important) contract of them all is the real estate purchase agreement. This contract is used during any real estate buying or selling transaction. According to The Balance, a purchase agreement is a “binding, bilateral agreement between two or more parties with legal capacity for the purchase, exchange or other conveyance of real property.”
Sounds pretty important right? So let’s get into the details.
Everything You Need To Know About A Real Estate Purchase Agreement
When drafting your purchase agreement, it is absolutely essential to keep the verbiage and terminology clear and concise. The last thing you want to do (or force others to do) is sign something they don’t fully understand. So just be sure to stick to the basics. Include:
- The names and information of all parties involved.
- Details about the property.
- Pricing specifics.
- Important dates.
And you’ll have everything you need! So without further adieu, let’s dive deeper into the anatomy of a real estate purchase agreement: