16+ SAMPLE Property Sale Agreement
What is a Property Sale Agreement?
A property sale agreement is a legal document between a buyer and seller to do a transaction in selling a property. This commonly occurs when a buyer will buy a piece of land property from a seller. It usually happens in real estate. Though, it is also applicable in other areas of business. The agreement states the conditions of the sale, expressing the things that have been negotiated by the buyer and the seller. All the terms that they have agreed upon are in the agreement.
The property sale agreement is also called a purchase agreement. It denotes the purchase of a property, having its name legally transferred to the buyer. A memorandum can be used before having the agreement. This makes the possibility of having a cancellation. But if payment can be readily given, then a stamp paper to transfer the title can be ready, too as you have the property sale agreement. This agreement is common in commercial properties where buyers need properties for their business.
A sample agreement letter to sell property is needed so that everything between the buyer and the seller will be settled as legal. You have to ensure that you will have your rights to the property as a buyer. So, you should also ascertain that you will have a good agreement. You have to give the best property sale agreement format to your agreement. Be sure that it will be fit for a legal and professional document. Because you cannot rely on an agreement with a poor format and grammatical errors.
Whether you will have a private property sale agreement or an immovable property sale agreement, you have to ensure that it has all the terms that you have negotiated with the seller. Through this, you can ascertain that you have nothing to worry about the property that you have bought. If something is wrong with the agreement, you can have cancellation of property sale agreement. So, to make a property sale agreement successful, you must be sure that it has all the right terms and conditions for the sale.
Elements of a Purchase Sale Agreement
A property purchase and sale agreement is very important if you will buy a real estate property. To be able to sign the agreement with full knowledge, you may want to know the elements that it contains. Read and consider the following elements that made up a property sale agreement:
Identification of Parties and Address: You should first outline the property that is involved in the agreement. As a legal description, you must write the address of the property. Then, you should identify the buyer and the seller. If buyers will act as joint tenants, you must write it in the agreement. Buyers will have the right of survivorship. If one of them dies, the right to the property will be passed to the other tenants. Each tenant has his or her share of the property. Shares may not be equal but they can be transferred freely. If tenants will reside together, it will be considered a joint tenancy.Purchase Price: The offered price from the seller is written in the agreement. The way that the property will be furnished will also be written. The payment method that can be done is by paying cash, paying a down payment, and having a mortgage. The financial addendum is needed so that you will know what to do in a lending situation. The agreement has the requirements for earnest money. This confirms the agreement. Rates may change but the buyer should pay at least $1000. The money usually goes to the down payment. Sellers may include contingencies to expire the earnest money. This is to avoid financial issues. The earnest money may be refundable in some conditions.Closing Date and Cost: The closing date should be written in the agreement and any changes that will be done to it. Anything that you will agree upon should be included in the agreement. The closing date transfers the property to the buyer. At this time, the property will be completely owned by the buyer. From the seller to the buyer, the property’s title will be given. This thing is recorded in a bill of sale. The closing cost should also be included in the agreement. This is the payment that should be done for the closing date. The payment can be divided between the buyer and the seller. It is up to both parties to agree on how they will divide the closing cost.Special Assessments: Prorating taxes and other costs should be included in the agreement. Both parties should negotiate how they will pay maintenance fees and other things. Taxes can be handled through an addendum. But usually, the seller should pay for all the special assessments.Homestead: If the property is homestead, both parties will be eligible for tax reductions. If you want to homestead, you should include its terms in the agreement. It will not be treated as a homestead if the buyer will occupy it or his or her relatives. It will be if it is used for homestead purposes. Any adjacent property will also be classified as a homestead.Included Items and Disclosures: All items that are included in the sale will be written in the agreement. It will include its structures and fixtures. Some of the included items are light fixtures, heating equipment, cooling equipment, window treatments, doors, built-in appliances, and bathroom fixtures. Items can be displayed with the property, but they may not be necessarily included in the sale. That is why you have to be clear in the agreement about the included items. You should highlight in the agreement if there are excluded items. Sellers should also disclose any information that may affect the value of the property. It is illegal if the seller will hide something defective about the property. They can make the health of the buyer to be at risk. So the seller should examine defects on the property. Disclosures are needed because there are disclosure laws that should be followed. Some of the disclosures are well disclosure, paint disclosure, methampethamine disclosure, termite damage disclosure, radon gas disclosure, and sewage disposal system disclosure.Contingencies: There are contingencies that have to be met before the property sale agreement. These can be mandated by the buyer and seller. The most common contingencies are inspection, appraisal, financing, and title. In the inspection contingency, the property should be inspected by a 3rd party. In appraisal, the property should be appraised by a lender. In financing, the property can obtain financing through a mortgage. In the title contingency, the seller should ensure that he or she has the title of the property.Default: There can be many options to cancel the agreement at any time. But cancellation must follow the terms of the agreement. One of the examples is that the buyer can back out when one of the contingencies is not met. But if the buyer will not keep the requirements of the agreement, then the contract will be considered a default. Some situations that can cause default are when the buyer cannot pay the earnest money at the right time, the buyer and seller do not sign the disclosure forms, the buyer and seller back out after the contingencies are canceled, the seller does not do his or her obligation to the property, the seller does not allow a walkthrough, and the seller does not leave the property on time. The agreement should include the things that should be done in case of default. The default can forfeit earnest money.Counter-Offer: The seller can make a counter-offer and this will be legally binding. The terms may be the same as the original agreement but there can be some key changes. Some of the changes in a counter-offer are a higher price, higher earnest money, refusal to pay the closing cost, refusal to do contingencies, alteration of contingencies, and exclusions from the agreement. The buyer can accept the counter-offer, reject it, or create a second counter-offer. Sometimes, counter-offers are made before an agreement can be finalized.
Tips on Property Sale Agreement
Having a land purchase agreement may require some wisdom on your side. You need to be wise because it is a legal document that is binding. To be at your best with the agreement, you may want to have some tips that you can use for it. Have the following tips:
Avoid Offer Rejection: Maybe you are excited to buy a property. You must know how you can write your purchase offer at your best. A poorly written offer may cause your offer to be rejected. If you truly want to own a property, be sure that you can write a great purchase offer. This way, sellers will accept your offer and you can buy the property that you want.Use Correct Document: You may think that it is easy to create an agreement. But this may not be true. You must be careful in choosing a template for creating your agreement. Not all generic templates and forms may be good. Some will not make you have a perfect agreement. So be sure to choose a perfect document that you can use.Set a Good Price: Many bidders may have been trying to win the property. To win over them, you need to set a great offer that the seller cannot say no to. Add $1000 to the price that other bidders can make. If you can add higher, the better. To make sellers choose you from other bidders, you must offer a good price that can satisfy them. Nothing can be too good at a good price.Give Initial Deposit: To show that you can buy in good faith, you should make an initial deposit that can be given to the seller. Through this, the seller can know that you are a good buyer. You can give a personal check or cash. What is important is that you can give something of value. You will be treated as a serious buyer if you will give an initial deposit. Through this, you can own the property that you desire.Put Expiration to Your Offer: In writing a purchase offer to the seller, you must include an expiration date. Through this, the seller will know that your offer can expire and he or she should jump on your offer. This can eliminate future bidders who may have a better offer than you. Because the seller has a limited time to accept your offer, you will have less competition for the property. You will have a better chance that your offer can be accepted.
How to Create a Property Sale Agreement
Are you looking for a property sale agreement template or a purchase agreement sample? Are you going to create a property sale agreement? If you are out of steps that you can use in creating, we can help you through this article. We have provided some steps that you can use. Have the following steps:
1. List the Buyer and Seller Information
The first part of the agreement is where you will write the information of the buyer and seller. You must write their names, contact information, and address. Be sure to put the details correctly because it may affect the agreement.
2. Describe the Property
The next thing is you have to describe the property. You must properly write the address of the property. Describe the property whether it is a vacant lot, apartment, or anything that it has to be. You must also put in detail if it is multiple properties.
3. List the Price
After the description of the property, you must list its price. Be definite in stating the price because this is the price that the buyer should pay the seller. You should also include things about taxes and other fees. You should negotiate whether you or the other party will pay for these fees.
4. Payment Terms
You should be clear with the payment terms. You should provide payment methods on how the buyer can pay you. If you have special terms on payment, you should include them in the contract.
5. List Terms and Conditions
Of course, you have terms and conditions for the sale. Be sure to include them in the agreement. If any other thing are relevant to the sale, you must list them in the contract.
Is inspection necessary before a property sale agreement?
Yes, it is needed. The seller has to ensure that the property is not defective. It is illegal to sell a property with a defect. So a 3rd party should inspect the property to ascertain that it is in perfect condition.
Is the bill of sale important?
Yes, the bill of sale is important. Just as the title of the property is important, you should also obtain the bill of sale. This will make your purchase legal.
When you want to own a property, you must know that you need the property sale agreement for the property to be completely yours. Make a great purchase offer and settle an agreement so that owning your new property will be legal. Well, do you need a template for a property sale agreement? This post has 16+ SAMPLE Property Sale Agreement in PDF. You can have one of them or all if you like. They are free. Download now!