Purchase Agreement
A purchase agreement in the property market is a legally binding contract between a buyer and seller outlining the terms and conditions of a property transaction. It specifies details such as the purchase price, closing date, contingencies, and any other conditions both parties must meet before the sale is finalised.
What is a Purchase Agreement?
In the realm of real estate, the purchase agreement, also known as a sale contract or sale agreement, plays a pivotal role in the buying and selling process. It serves as the roadmap for the transaction, detailing every aspect of the sale from offer to closing. The agreement includes the agreed-upon purchase price, the identity of the buyer and seller, property description, payment terms, and any contingencies that may affect the sale's progression, such as financing, inspections, and repairs.
The purchase agreement is drafted after the buyer makes an offer and the seller accepts it, but before the sale is completed. This document ensures that both parties understand their rights and obligations, providing a clear course of action for proceeding with the sale. It also protects both parties by specifying what happens in the event of a breach of contract, such as the failure to secure financing, unsatisfactory inspection results, or other unforeseen circumstances that could derail the transaction.
Once signed by both the buyer and seller, the purchase agreement becomes a legally enforceable contract. Both parties are then obligated to follow through with the terms as outlined, leading to the eventual transfer of ownership of the property from the seller to the buyer.
Frequently Asked Questions
Purchase Agreement is a term that you may have heard before, but you might not be sure what it means. Here are some common questions and answers to help you understand what it means.
