This post covers everything you need to know about a house sale agreement.
It’s crucial to make sure that your contract is unbreakable whether you’re wanting to sell your primary residence or an investment property, purchase a new house, apartment, condo, or both.
It’s crucial to take the time upfront to clearly define the conditions under which a property transaction will take place and make provisions for unforeseen circumstances, as this can help you avoid potential legal or financial obstacles later on.
Here you will learn;
- What is a house sale agreement?
- How to write a house sale agreement
- Contents of house sale agreement
- house sale agreement template
What is a house sale agreement?
The house sale agreement is an agreement or contract between the owner of the house (potential seller) and another person (potential buyer/purchaser) setting out the terms and conditions of selling and buying the house.
This agreement essentially “puts under a binding contract” the buyer, seller, and the subject property.
A house sale/purchase agreement is alternatively known as
- Real Estate Purchase Agreement.
- Real Estate Sales Contract
- Home Sale Contract
- Real Estate Purchase Contract
Let me explain a bit more so that you can understand how things work.
In essence, when a buyer submits an offer to buy a new house, they are proposing terms of the sale and specifying crucial financial information such as the offer price.
The specifics of this offer will then be up for negotiation or acceptance by the home seller.
Both parties will sign the purchase agreement if they are content with the terms of the deal, which could happen after any ongoing negotiations that take the form of counteroffers.
The property that is being sold at this time will be deemed to be “under contract,” as will any parties to the agreement (the home buyer and seller).
The house sale agreement specifies the terms that must be satisfied in order for the sale to close and for the new buyer to acquire ownership of the property.
It also serves as a signal that all parties are willing to enter into a home sale transaction.
Related: transfer your property for natural love and affection via a deed of gift
How to draft valid a House sale agreement
To write a legally accepted House sale agreement you have to clearly outline the terms and conditions of the transaction so that both the buyer and the seller are aware of what they are signing.
To be enforceable your agreement must comply with the contract and real estate law of your state.
The following are the things that you should write in your land sale agreement
- Title i.e HOUSE SALE AGREEMENT
- Name and postal & physical address of the seller
- Name and postal & physical address of the buyer/purchaser
- Clause to show that the seller is a legal owner of the house
- Description of the property
- Earnest Money
- Actual selling price.
- Fixtures and appliances
- Property taxes:
- Closing Terms
- Termination clause
- Governing law clause
- signatures of the buyer and seller
House sale agreement sample
REAL ESTATE PURCHASE AGREEMENT
THIS AGREEMENT is made on this………day of ………..
NAME OF THE SELLER of ADRESS OF THE SELLER (hereinafter called “the Seller”) of the one part
NAME OF THE BUYER of ADRESS OF THE BUYER (hereinafter called “the Purchaser”) of the other part:
WHEREAS: The Seller is the owner of a residential house/ situated on located at the street address of ________, the City of ________, State of ________(Hereinafter called “the property”)
AND WHEREAS The Seller shall also include the following personal property in addition to the real estate specified in this Section:__________
AND WHEREAS The following fixtures are NOT included by the seller together with the real estate covered in this Section________
AND WHEREAS: The Seller is desirous of selling to the Purchaser and the Purchaser is desirous of purchasing from the Seller the said property for a consideration of USD___________ (Hereinafter called “the purchase price”) payable as follows
(A) Earnest Money Deposit. $__________ (the “Deposit”), due upon the signing of this Agreement, the receipt of which is hereby acknowledged, to be held in escrow pursuant to this Agreement. The Deposit shall be applied to the Purchase Price at the Closing.
(B) Closing Balance. The remainder of the Purchase Price is due upon the delivery of the general warranty deed at the Closing. This amount is subject to change based on adjustments made pursuant to this Agreement.
Unless otherwise stated in the Agreement, all payments shall be made in proceeds that are immediately available to Seller by [payment method]
NOW THEREFORE IT IS HEREBY AGREED AS FOLLOWS:
- In consideration of the purchase price hereinabove referred, the Seller has agreed to sell and the Purchaser has agreed to purchase the property.
- The Seller warrants that it owns the property free from encumbrance and that it has the right, authority, and capacity to sell the property to the Purchaser.
- The Seller shall be responsible for all debts, outgoings, and liabilities of the property up to the date hereof and covenants to indemnify the Purchaser from and against all actions, proceedings, costs, and claims in respect thereof.
- The Purchaser shall assume and become responsible for all outgoings and liabilities in relation to the property from the date hereof.
- All real property taxes and adjustments which are delinquent shall be paid at the Closing out of funds due to the Seller. Any non-delinquent real property taxes and adjustments, if any, shall be apportioned pro rata on an accrual basis
- The closing of the Transaction (the “Closing”) shall occur on ___, 20_____and shall take place at ____________________________ [Address], unless otherwise agreed upon by mutual consent of the Parties. The buyer has the right to make a final inspection of the Property prior to the Closing.
- The Seller shall deliver vacant possession to the Purchaser immediately upon receipt of full payment of the purchase price.
- In the event Buyer defaults, Buyer shall forfeit the Deposit to Seller as liquidated damages, which shall be the sole and exclusive remedy available to Seller. In the event Seller defaults, the Deposit shall be refunded to Buyer, and Buyer may sue for all remedies available at law or in equity
- Any dispute arising from this Agreement shall be resolved through [insert method (s)]
- This Agreement may be amended or modified only by a written agreement signed by all of the Parties.
- This Agreement shall be governed by and be constructed in accordance with the laws of [state]
- Any notice or other communication given or made to any Party under this Agreement shall be in writing and delivered by hand, sent by overnight courier service or sent by certified or registered mail, return receipt requested, to the address stated above or to another address as that Party may subsequently designate by notice and shall be deemed given on the date of delivery.
- This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, heirs, executors, administrators, successors, and permitted assigns.
- If any provision of this Agreement is held to be invalid, illegal, or unenforceable in whole or in part, the remaining provisions shall not be affected and shall continue to be valid, legal, and enforceable as though the invalid, illegal or unenforceable parts had not been included in this Agreement.
- This Agreement contains the entire understanding between the Parties and supersedes and cancels all prior agreements of the Parties, whether oral or written, with respect to the subject matter.
IN WITNESS WHEREOF the parties hereto have executed this Agreement the day and year first above written.
Buyer’s Signature: ________________________ Date: ______________
Seller’s Signature: ________________________ Date: ______________
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