If you are planning to buy a property, it`s important to have a written document that outlines the terms and conditions of the sale. This document is called the Offer to Purchase Agreement.
An Offer to Purchase Agreement is a legal contract between the buyer and seller that details the terms of the sale. It specifies the purchase price, the closing date and any contingencies that must be met before the sale can be finalized.
To give you an idea of what an Offer to Purchase Agreement looks like, we have provided a sample below. Keep in mind that this is just an example and the agreement may vary depending on the specifics of your sale.
Sample Offer to Purchase Agreement
This Offer to Purchase Agreement (the “Agreement”) is entered into on [insert date] between [insert buyer`s name] (the “Buyer”) and [insert seller`s name] (the “Seller”).
1. Property Description. The Buyer agrees to purchase from the Seller the property located at [insert property address] (the “Property”). The purchase price for the Property is [insert purchase price].
2. Closing Date. The closing date for the sale of the Property is [insert closing date].
3. Contingencies. This Agreement is contingent upon the following:
– Financing: The Buyer has secured financing for the purchase of the Property by [insert financing contingency deadline].
– Inspection: The Buyer has completed a satisfactory inspection of the Property by [insert inspection contingency deadline].
– Appraisal: The Property has appraised for at least the purchase price by [insert appraisal contingency deadline].
4. Earnest Money. The Buyer has deposited [insert amount] (the “Earnest Money”) into an escrow account with [insert escrow company]. The Earnest Money will be applied to the purchase price of the Property at closing. If the sale is not completed due to a breach of this Agreement by the Seller, the Earnest Money shall be returned to the Buyer.
5. Seller Representations and Warranties. The Seller represents and warrants that:
– The Seller has clear and marketable title to the Property.
– There are no liens, encumbrances, or claims against the Property.
– The Property is in compliance with all applicable laws and regulations.
6. Buyer Representations and Warranties. The Buyer represents and warrants that:
– The Buyer has the financial ability to purchase the Property.
– The Buyer has not entered into any other agreements to purchase real estate that would interfere with their ability to complete this sale.
7. Default. If either party breaches this Agreement, the non-breaching party may terminate this Agreement and seek damages.
8. Governing Law. This Agreement shall be governed by the laws of the state in which the Property is located.
9. Entire Agreement. This Agreement contains the entire understanding of the parties and supersedes any prior negotiations or agreements.
10. Signatures. This Agreement may be executed in counterparts and may be signed electronically.
Buyer: [insert buyer`s signature] Date: [insert date]
Seller: [insert seller`s signature] Date: [insert date]
Conclusion
An Offer to Purchase Agreement is an essential document in any real estate transaction. It protects both the buyer and seller by outlining the terms and conditions of the sale. When drafting an Offer to Purchase Agreement, it`s important to be thorough and include any contingencies or representations that may affect the sale. Use the sample above as a guide to create your own agreement and ensure a smooth and successful property purchase.