A properly drafted purchase agreement will include the following key elements:
Complete Legal Description of the Property: This is a detailed description of the property being sold, including its boundaries and location. It ensures that there is no ambiguity about the property in question.
Purchase Price: The agreement should specify the amount the buyer will pay for the property, including any deposit or down payment required.
Terms and Conditions: This includes details about financing, contingencies (such as inspections or appraisal), and any other conditions that must be met for the transaction to proceed.
Granting Clause: This clause outlines how the property will be transferred from the seller to the buyer, specifying the rights and interests being conveyed.
Closing Date and Procedure: The agreement should state the date when the transaction will be completed and the property transferred, as well as the procedure for closing.
Signatures: The agreement must be signed by both the buyer and the seller, and possibly their agents, to be legally binding.
Disclosure of Material Facts: The seller is often required to disclose any known issues or defects with the property.
Contingencies: Conditions that must be satisfied for the sale to proceed, such as home inspections, financing, or the sale of the buyer's current home.
These elements ensure that the agreement is clear, comprehensive, and legally enforceable.
