by Dell Claiborne
What is a Purchase and Sale agreement?
The Purchase and Sale agreement is known by a few different names. For example, you will also see it referred to as an agreement of sale. Most commonly the Purchase and Sale agreement is simply known as the Purchase Contract or just Contract. This is a document that states that the purchaser(s) intent to buy and the seller(s) intent to sell the property in question. The Purchase Agreement includes the terms of the transaction, which are not limited to the following:
- The names and addresses of the sellers and purchasers
- The purchase price and how it is to be paid, including the amount of any down payment
- Arrangements for financing
- The legal description of the property
- A provision that title to the property shall be good and marketable of record, subject to reasonable easements
- The condition of the property at the time of sale
- Provisions for property inspections and terms of repairs or credits.
- Date of settlement and possession
- Statement of the settlement costs
- Provision that the terms of the contract, particularly any warranties as to the condition of the property, should survive the execution and delivery of the deed
- Provision as to who bears the risk of loss if the property should be damaged prior to settlement
- The names and commissions due the Real Estate Brokerages
- Liens on the property
It is important to make sure that you understand the terms and conditions of the Purchase Agreement and feel comfortable asking questions until you do understand. Also, be aware that while your Real Estate agent is highly trained and skilled, he or she is not an attorney. Buying a home can many times bring up many legal questions that are best answered by an attorney with a Real Estate background.