Real Estate Purchase Agreement
Preview document - "Real Estate Purchase Agreement"
Frequently Asked Questions
What is the Closing Date?
Closing (also referred to as completion or settlement) is the final step in executing a real estate transaction. The closing date is set during the negotiation phase, and is usually several weeks after the offer is formally accepted. On the closing date, the ownership of the property is transferred to the buyer.
What is the difference between mediation and arbitration?
Arbitration is like the court process as parties still provide testimony and give evidence similar to a trial but it is usually less formal. In mediation, the process is a negotiation with the assistance of a neutral third party. The parties do not reach a resolution unless all sides agree.
When can a real estate contract be terminated?
There are two ways to terminate a real estate contract - you can either include an option to terminate in the contract, or rely on the statutory provisions of your state. State laws commonly allow a real estate contract to be terminated for the Seller's failure to disclose material facts to the Buyer. To get a better idea of what your state law permits, please consult the statutes of your state.
What is the option to terminate?
The termination option is a clause that allows real estate buyers to back out of a purchase contract during a fixed period of time that precedes its official closing date. Designed to increase flexibility for buyers and sellers, the termination option allows both parties to court other suitors.
How should I refer to people and terms in the clause?
Do not use several names or words to refer to the same person or thing as it could cause confusion and ambiguity by seemingly introducing new or different people or items.
Certain words were capitalized and defined already in this Agreement. For example, the purchaser is called the 'Buyer', and the property is called the 'Property'. Use the same predefined terms in your additional clauses.Do not use pronouns such as: they, us, we, our, you, or me. Pronouns may be ambiguous and can cause confusion.
Miscellaneous tips
Do not abbreviate words.
Use numerals, not words, to denote amounts.
Try not to repeat or contradict what has already been stated in the residential lease agreement.
Only put one paragraph per additional clause.