Real Estate Series: Real Property Purchase Agreement
The Real Property Purchase Agreement is the single most important document in the transaction. The Real Property Purchase Agreement provides the terms and conditions of the purchase and the sale of real property.
Although standard printed forms are useful, a lawyer is helpful in explaining the form and making changes and additions to reflect the buyer's and the seller's desires. There are many issues that may need to be addressed in the purchase agreement; below are some common examples:
What do the contingencies mean? What if I am being urged to waive a contingency?
If the property has been altered or there has been an addition to the property, was it done lawfully?
If the buyer has plans to change the property, may the planned for changes to property be done lawfully?
What happens if a buyer has an engineer or architect inspect the property and termites, asbestos, radon, or lead-based paint are found?
What if the property is found to contain hazardous waste?
What are the legal consequences if the closing does not take place, and what happens to the earnest money?
Most buyers finance a substantial portion of the purchase price for a home with a mortgage loan from a lending institution. The purchase agreement should contain a carefully worded provision that it is subject to the buyer's obtaining a commitment for financing.
Our office frequently reviews and assists and drafts real property purchase and sale agreements. Contact us if you have any questions.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and should not be construed as legal advice from Leos & Gilkerson, PLLC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a licensed lawyer.