Amy Horn

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Residential Land Purchase Agreement

Each time a house is sold and the property is transferred from one person to another, a legal contract called a real estate purchase contract is used to define the terms of the sale. An addendum is usually attached to a sales agreement to describe a contingency in the agreement. A contingency is a condition that must be met, otherwise the terms of the whole agreement may be invalidated. Below are the most common terms and conditions mentioned in the sales contracts. You should use this agreement if a) you are a potential buyer or seller of real estate, (b) define the legal rights of each party to the sale and (c) define the respective obligations of each party before the transfer of ownership. Earnest Money Deposit: A serious money deposit is a deposit that shows the buyer`s good faith and obligation to continue buying the property. In return for the buyer who makes a serious deposit of money, the seller removes the property from the market. At the conclusion of the purchase, the deposit of the money is credited with the purchase price. If the contract is terminated under the terms of the contract, the deposit of money is normally refunded to the buyer. Commercial Property Purchase – For any type of non-residential property, it is recommended to use the commercial sales contract. The signed sales contract can be delivered in person, by email or fax.

Digital signatures and signatures sent by fax or photocopy are deed to be valid. Sometimes a buyer will pay everything in cash for the property. However, most of the time, the buyer needs additional financing to get the full purchase price. Here are the three common financing methods used in real estate purchase contracts: the contingency list could contain a credit quota containing details of the type of loan that the buyer intends to arrange and allow them to exit the contract if they are unable to obtain that financing. An inspection quota allows the buyer to cancel the purchase if his professional home inspector finds significant problems with the home. Alternatively, the buyer may ask the seller to accept a lower purchase price or to make certain repairs that would be costly to the buyer or a health and safety issue. Some states ask sellers to disclose the location and status of wells on the land – or if the seller is not aware of existing wells. If the seller is known to the wells, the sales contract indications must contain a map that outlines the exact location of each well.

The seller must also indicate whether the well is sealed or in use. Lead-Based Paint Disclosure – a federal law requiring the owner of a property built before 1978 to determine whether there is a shine, scrub or color deterioration on the site. Since coloured particles are dangerous to a person`s health, this is a necessary disclosure that must be linked to any sales contract. As a general rule, the buyer`s representative writes the sales contract. However, unless they are authorized by law to practice law, real estate agents generally cannot establish their own legal contracts.

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